A gauge of India's services sector signaled a strong performance during the final month of 2022, with service providers recording faster expansions in output.
The seasonally adjusted S&P Global India Services PMI Business Activity Index rose from 56.4 in November to 58.5 in December, highlighting the strongest rate of expansion since mid-2022, according to a media statement. A reading above 50 indicates expansion in business activity.
Rising from 56.7 in November to 59.4 in December, the S&P Global India Composite PMI Output Index indicated the quickest growth since January 2012.
Companies linked the upturn in services to robust intakes of new work and favourable market conditions. The finance and insurance segment recorded the quickest increase in output, whereas real estate and business services propped up the rankings. New business increased for the 17th month in a row in December.
Input costs rose further, with companies mentioning wage pressures and higher prices for energy, food, and transportation. The overall rate of inflation quickened in November and was above its long-run average.
By sector, input cost inflation was most acute in consumer services. As a result of a further increase in business expenses, firms raised their own selling prices at the end of the year. Charge inflation has slowed since November, but it remains strong and historically high. Finance and insurance topped the rankings for output charge inflation for the second month running.
The pace of job creation was above its long-run average, but eased to a five-month low.
Predictions of further improvements in demand and marketing plans continued to support business confidence in December. Companies were at their least upbeat in three months, but the overall level of positive sentiment remained above its long-run average. Competitive pressures and inflation concerns dampened overall optimism.
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