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India’s services sector remained robust in November 2024, with the Purchasing Managers’ Index (PMI) inching down slightly to 58.4 from 58.5 in October, according to data from S&P Global.
The report highlighted sustained sales growth that continued to exert pressure on firms’ operational capacities, leading to record-breaking job creation.
Employment growth reached its highest level since the survey’s inception in 2005, driven by the recruitment of both permanent and temporary staff.
However, this hiring surge came with a cost, as price pressures intensified. Input costs rose at their fastest pace in 15 months, while output prices recorded their steepest increase in nearly 12 years.
Despite the slight dip, total sales growth remained strong, with the corresponding index more than four points above its long-term average.
New export orders also picked up at the quickest rate in three months, though this was still slower compared to mid-2024 levels. Firms attributed growth to demand from clients in regions such as Asia, Europe, Latin America, and the US.
The HSBC India Composite Output Index, which combines data from both manufacturing and services, stood at 58.6 in November, slightly lower than October’s 59.1. While the manufacturing sector witnessed a more noticeable slowdown in growth compared to services, it still outpaced the services sector in terms of overall expansion.
Pranjul Bhandari, Chief India Economist at HSBC, remarked, “India’s services PMI posted a robust 58.4 in November, a marginal dip from October’s 58.5. Employment in the sector grew at the fastest rate since the survey began in 2005, reflecting growing business confidence, rising new orders, and strong international demand.”
She added that elevated food and labor costs pushed input and output prices to their highest levels in 15 months and nearly 12 years, respectively.
Movement of Services PMI in FY25
The Services PMI, or Purchasing Managers’ Index, measures business activity in the services sector, with a reading above 50 indicating expansion, below 50 represents contraction while 50 means neutral activity.
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