Services PMI Hits 4-Month High in Dec

Demand buoyancy continued to drive new business inflows higher during December, which in turn supported output growth and prompted firms to recruit additional workers.

- Rajesh Kumar Singh

According to S&P Global, the HSBC India services PMI rose to a four-month high of 59.3 in December from 58.4 the previous month.

Buoyant underlying demand was identified by companies as the primary factor behind output growth. Not only did new orders increase for the forty-first month in a row, but also to the greatest extent since August 2024, said S&P Global.

"In some instances, survey members indicated that recent efforts to expand capacities allowed them to accept more work," it said.

The composite PMI, a weighted average of both manufacturing & services purchasing managers' indices, also rose to a four-month high of 59.2 in December from 58.6 in November, driven by buoyancy in services activity. Data released last week had showed manufacturing PMI ebbing to a 12-month low of 56.4 in December.

Ines Lam, Economist at HSBC, said: "Strength in the services PMI stands in contrast with the growing signs of a slowdown in the manufacturing industry."