India’s services sector expanded — both in terms of activity and new orders — in December, though at a lower rate than November, the HSBC survey of purchasing managers in the private sectorshows.
Business activity eased (51.1 in December against 52.6 in November) along with a moderation in new business flows (51.8 against 52.5 in November), according to the HSBC services Purchasing Managers Index (PMI) released on Tuesday. A reading above 50 indicates that the services sector is generally expanding. While India’s services sector slipped, China’s grew at its fastest pace in three months in December. The services PMI for China rose to 53.4 in December from 53 in November.
For India, the moderation in services sector activity in December was due to lower growth in new businesses flows. Nevertheless, the overall reading for activity was stronger than the average observed for 2014 so far, Pranjul Bhandari, Chief India Economist, HSBC Securities and Capital Markets (India), said in a research note.
Despite the weakening in activity, business expectations for services strengthened (61.8 versus 59.7 in November).