Services sector growth hits six-month high in Jan

Service sector activity, as measured by the HSBC Purchasing Managers Index (PMI), climbed to a six-month high of 61.8 in January 2024, from 59 the previous month, on increased new business, according to a statement from S&P Global released Monday.

- Ashokamithran T

NEW DELHI: The earlier high of 62.3 was in July 2023, according to data from the Centre for Monitoring Indian Economy (CMIE).

A reading above 50 indicates an expansion in economic activity over the last month. With the January 2024 value of 61.8, the services sector PMI has stayed in the expansion territory consecutively for the past 30 months.

Services activity expanded at a faster rate than the recently released manufacturing index which came in at a four-month high of 56.5. This number was 54.9 in December 2023. The composite index now stands at 61.2, the highest since July 2023, a reflection of the economy's resilience.

GST collections in January 2024 stood at 1,72,129 crore, 4.4% more than the collection a month ago. The GST collections grew 10.4% in the reporting month on a year-on-year basis.