Expenditure by a business on raw materials and services, gives an accurate description of the product being rolled out on production lines, and subsequently the overall consumer demand. This is why the purchase managers' index, which collects data on orders from multiple firms, is a major indicator of a country's economic health. After the manufacturing PMI for India jumped towards the end of 2022, S&P Global has revealed that its service PMI has also surged to the highest level in past six-months at 58.5.
A steady inflow of new contracts and market conditions favouring the services sector, contributed to the uptick. For PMI, any number above 50 shows that business activity has expanded, and December saw a surge for service activity in India.
Firms are also optimistic about 2023, with finance and insurance delivering top sales figures, as real estate and business services were seen lagging behind. Despite with rising input costs, wage pressure and higher energy as well as transportation rates, job creation by services firms managed to surpass the long-term average.
Growth of new businesses and positive sentiment job creation, but it slowed down to the lowest pace in five months, across the private sector.
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