Services PMI logs fastest growth in 3 months in January, expands to 51.7

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The Indian services sector remained in expansion mode in January, registering the fastest rise in activity in three months driven by a renewed increase in new business orders.The seasonally adjusted Nikkei Services Business Activity Index improved to 51.7 in January, up from 50.9 in December, signalling a faster expansion. The index remained above the neutral mark of 50 in January, which separates growth from contraction for the second consecutive month.

In November, the index stood at 48.5. “The recovery across India’s services sector continued during January, with growth in output picking up to the joint-strongest since June 2017 as underlying demand conditions improved,” said a report of IHS Markit.

As per the report, “Job creation accelerated to the second strongest in over six-and-a-half years.” Going forward, services sector companies in India remained optimistic regarding expected activity levels in 12 months’ time.