India’s services sector showed robust growth in December 2024, with the Services Purchasing Managers’ Index (PMI) rising to 59.3 from 58.4 in November, according to the HSBC Final India Manufacturing PMI compiled by S&P Global. The reading highlights sustained momentum in the services sector, reflecting increased hiring and higher sales during the period.
Key Highlights:
- Services PMI: Climbed to 59.3 in December, up from 58.4 in November, marking a strong expansion in the sector.
- Manufacturing PMI: Dropped to a 12-month low of 56.4 in December, slightly down from 56.5 in November, as production and fresh business orders expanded at a slower rate.
PMI Analysis:
The PMI serves as a crucial indicator of economic health, derived from surveys of business executives across key industries. A reading above 50 indicates growth, while a reading below 50 suggests contraction. The robust services PMI underscores India’s economic resilience despite a slight deceleration in manufacturing activity.
The decline in manufacturing PMI to its lowest in a year signals challenges in production expansion and new orders, though overall activity remains in the growth zone. Meanwhile, the services sector’s sustained expansion highlights its critical role in driving economic growth.
