Indian services industry sees fastest pick up in 6-month in Dec 2022: S&P Global

Bengaluru, Jan 4 (KNN) In the middle of strong demand, fuelling business optimism despite high costs the activity of services industry in India grew the highest during December 2022 in six months.

The S&P Global India services purchasing managers' index (PMI) (INPMIS=ECI) rose to 58.5 in December from 56.4 in the previous month, confounding expectation in a Reuters poll for a fall to 55.5.

Separating growth from contraction for the 17th straight month, the index was above the 50-mark.

This is the longest stretch of growth since June 2013.

Commenting on the development, Pollyanna De Lima, economics associate director at S&P Global Market Intelligence said, “As we head into 2023, companies signalled strong optimism towards the outlook for output.”

“Inflation trends were mixed, as input prices rose at a faster pace and the upturn in charges moderated,” said Lima.

Due to greater energy, food, staff and transportation costs expenses rose faster.

Prices charged remained elevated despite moderating slightly from November, when they rose at the quickest rate since July 2017.

This could elevate India's retail inflation which eased to 5.88 per cent in November, below the top of the Reserve Bank of India's target band of 4 per cent -6 per cent for the first time in 2022.  (KNN Bureau)