Bengaluru: service sector of india Extended for the fifth consecutive month in December, a survey showed, though demand grew at a slower pace than the previous month, but another wave of Covid-19 and concerns over inflationary pressures cast a shadow.
Wednesday’s Services Purchasing Managers’ Index, compiled by IHS Markit, dropped from 58.1 in November to 55.5 in December, the lowest since September, but still above the 50-point mark that separates growth from contraction.
Pollyanna de Lima, economics associate director at IHS, said: “2021 was another difficult year for service providers and growth took a slight step back in December. Still, the latest readings compared the trend of the survey to sales and business activity.” pointed to strong growth in Market.
The new business sub-index was above 50 for the fifth month, supported by the real estate and commercial services sectors, though growth slowed to a three-month low.
Export business continued to decline as international sales were weighed down by travel restrictions related to the pandemic.
Business confidence was at a four-month high in December on strong demand, yet rising coronavirus infections kept it under control.
India this week reported its highest number of Covid-19 cases since September, approaching 40,000 cases in a day, taking the total number of infections to nearly 35 million.
Higher prices for transportation, vegetables and medical equipment boosted input costs, but firms reduced that burden on customers.
According to a Reuters poll last month, the Reserve Bank of India does not expect a hike in interest rates until the next quarter, as inflation has remained within its 2 per cent-6 per cent target range since July.
Firms laid off their employees in December due to a shortage of skilled labor, breaking a three-month hiring trend.
De Lima said, “Uncertainty about the outlook, and a general lack of pressure on capacity, led to a fresh decline in employment during December. It says the decline was modest and is expected to improve this year, with demand for services favourable.” Will continue.” ,
The overall index declined to 56.4 in December from 59.2 in November, the lowest since September but supported by a strong manufacturing industry.
Wednesday’s Services Purchasing Managers’ Index, compiled by IHS Markit, dropped from 58.1 in November to 55.5 in December, the lowest since September, but still above the 50-point mark that separates growth from contraction.
Pollyanna de Lima, economics associate director at IHS, said: “2021 was another difficult year for service providers and growth took a slight step back in December. Still, the latest readings compared the trend of the survey to sales and business activity.” pointed to strong growth in Market.
The new business sub-index was above 50 for the fifth month, supported by the real estate and commercial services sectors, though growth slowed to a three-month low.
Export business continued to decline as international sales were weighed down by travel restrictions related to the pandemic.
Business confidence was at a four-month high in December on strong demand, yet rising coronavirus infections kept it under control.
India this week reported its highest number of Covid-19 cases since September, approaching 40,000 cases in a day, taking the total number of infections to nearly 35 million.
Higher prices for transportation, vegetables and medical equipment boosted input costs, but firms reduced that burden on customers.
According to a Reuters poll last month, the Reserve Bank of India does not expect a hike in interest rates until the next quarter, as inflation has remained within its 2 per cent-6 per cent target range since July.
Firms laid off their employees in December due to a shortage of skilled labor, breaking a three-month hiring trend.
De Lima said, “Uncertainty about the outlook, and a general lack of pressure on capacity, led to a fresh decline in employment during December. It says the decline was modest and is expected to improve this year, with demand for services favourable.” Will continue.” ,
The overall index declined to 56.4 in December from 59.2 in November, the lowest since September but supported by a strong manufacturing industry.
,