India’s service sector showed growth hitting a five-month high in December as there was an upward trend in business orders that led to employment and output boost.
The Nikkei/IHS Markit Services Purchasing Managers’ Index (PMI) showed growth to 53.3 in December to 52.7 in November which was the second-strongest rate of increase in output in over a year.
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“The news of sustained job creation, robust new order growth and a pick-up in business confidence suggest that expansion can be maintained in the early part of 2020,” said Pollyanna de Lima, principal economist at IHS Markit.
The upward trend in the services sector activity growth, according to survey members can be linked to improved market conditions, new business boost and expansion in total sales for the third consecutive month in December.
Nikkei India PMI Output Index calculates growth after considering manufacturing and services indices which is relative to the size of GDP.