Year 2023 It has ended but the last month of the year proved to be good from the economy point of view. Good growth was seen in the service sector of the country during the month of December and the sector which contributes the most to the economy started getting back on track. This information was found in the service sector PMI data released on Friday.
Service PMI in December
According to data released today, HSBC India Services Purchasing Managers Index rose to 59 last month. This is the 3-month high level of the index. Earlier in the month of November, this index of service sector was at 56.9. In the month of November the index was at its lowest level in 1 year. If seen in this way, it can be seen that during the month of December, there was a good increase in the activities of the service sector and the year ended on a good note.
Growth has continued for 29 months
If PMI remains above 50 then it shows that growth in the sector is intact. Whereas an index of less than 50 indicates contraction in the sector. Even though the PMI of the service sector had decreased during the last few months, it remained above 50. The PMI of the service sector has been above 50 for 29 consecutive months, which means that growth is continuing, even though the pace of growth has slowed down in between.
Help received due to these reasons
HSBC’s Chief India Economist Pranjul Bhandari says that new orders have helped the service sector, due to which business activities have picked up and 2023 ended on a high note. There was less increase in input cost during the month of December as compared to November. The increase in input costs last month was the lowest since August 2020. Output rates increased sharply, leading to improvement in corporate margins during the month of December. He said that the growth of the service sector is expected to remain intact this year.
There was a decrease in manufacturing PMI
Earlier on Wednesday, PMI data for the manufacturing sector was released. According to the data released two days ago, the manufacturing PMI came down to 54.9 in the month of December. Strong activity in the services sector helped last month, due to which the overall index i.e. HSBC India Composite PMI Output Index reached a three-month high of 58.5.
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