(MENAFN- KNN India)
New Delhi, Jan 6 (KNN) Business activity in India demonstrated renewed vigour in December 2024, primarily propelled by robust demand in the services sector, despite a concurrent slowdown in manufacturing growth.
According to the latest hsbc India Services Purchasing Managers' index (PMI), compiled by S&P Global, the index climbed to 59.3 in December from 58.4 in November, marking its highest level in four months.
The survey, which gathered data from 400 service providers, revealed that the sector has maintained its expansion streak for 41 consecutive months, consistently remaining above the crucial 50-point threshold that separates growth from contraction.
The surge in business activity was accompanied by increased workforce recruitment, as companies responded to heightened demand pressures.
The survey highlighted that new orders reached their highest levels since August 2024, with companies citing strong underlying demand as the primary driver of output growth.
Cost pressures showed signs of moderation, though businesses continued to report higher expenses related to food, labour, and materials, while the pace of selling price inflation also decelerated during the month.
The services sector, which accounts for more than half of India's gross domestic product, has played a crucial role in the nation's economic trajectory.
While India's economy demonstrated remarkable resilience with an 8.2 per cent growth in fiscal year 2023-24, exceeding the Reserve Bank of India's projection of 7 per cent, recent quarters have shown signs of moderation.
The economy experienced a slowdown to 6.7 per cent growth in the first quarter of 2024-25, followed by a further deceleration to 5.4 per cent in the second quarter, marking the slowest pace in nearly two years.
This downward trend has been attributed to weakening manufacturing activity, subdued urban consumption, and lower-than-expected corporate earnings.
(KNN Bureau)
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