NEW DELHI: In the wake of sharp increase in new business orders, country's services sector expanded further during the last month, as revealed in a HSBC survey. In December, the services sector registered the fastest pace of growth in three months.
The HSBC's Services Purchasing Managers Index (PMI) for December stood at 55.6, higher from 52.1 in the previous month, signalling a sharp expansion in activity.
“The services sector provided some holiday cheer with activity fully recovering after two months of deceleration, led by a sharp rise in new business,” HSBC Chief Economist for India and ASEAN Leif Eskesen said.
In the previous two months, namely October and November, the index had witnessed a considerable decline. It had registered the fastest pace of growth in the seven months till September.
Since November 2011, the index has remained above the 50-mark which indicates expansion.
Moreover, the companies are bullish about the business outlook for the current year and anticipate increase in the overall activity, higher demand this year, HSBC said.