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Informist, Tuesday, Jan. 6, 2026

 

--India Dec services PMI 58.0 vs 59.8 in Nov

--India Dec composite PMI 57.8 vs 59.7 in Nov

 

NEW DELHI – India's services sector activity eased in December, with the HSBC India Services Purchasing Managers' Index falling to an 11-month low of 58.0 from 59.8 in November, S&P Global said Tuesday. The fall was due to stagnation in job creation, S&P Global, which compiles the PMI, said in a release.

 

At 58.0, the final services PMI for December was lower than the flash estimate of 59.1, which was released on Dec. 16. A PMI reading of more than 50 denotes expansion in activity from the previous month, while a print below 50 indicates contraction. 

 

Meanwhile, the composite PMI softened to a 25-month low of 57.8 in December from 59.7 in November. Data released Friday showed India's manufacturing PMI fell to a two-year low of 55.0 in December.

 

According to S&P Global, the trend of hiring growth that began in June 2022 came to an end in December. "One factor that prevented firms from recruiting additional staff was a lack of pressure on their operating capacities. Outstanding business volumes were broadly stable in December, as was generally the case in both October and November," S&P Global said in the press release. 

 

Besides stagnation in hiring, a slight increase in input costs and output charges also added to the pressure, S&P Global said. However, the rates of inflation remained below their respective long-run averages, it added. The increases in new orders and output were supported by competitive pricing, demand buoyancy and positive client interest, but the growth was constrained by a greater presence of alternative providers and cheaper services offered elsewhere.

 

Firms reported improvement in external demand with gains from Asia, North America, West Asia, and the UK. "New export orders rose at a marked pace, and one that was quicker than in November," S&P Global said. 

 

Amid the slowdown, what bodes well for the outlook is a benign inflation environment. "If services firms continue to see only mild increases in their expenses, they should be better positioned to compete and limit price hikes, thereby boosting sales and creating more jobs," the release said, quoting Pollyanna De Lima, economics associate director at S&P Global Market Intelligence.  End

 

Reported by Krity Ambey

Edited by Avishek Dutta

 

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