Services activity at 6-month high in January

NEW DELHI: Activity in the country’s services sector rose to a six-month high in Jan, led by sharpest increase in new orders since last July and fastest growth in exports in last three months, a survey showed on Monday.

The HSBC India Services PMI business activity index was comfortably above the neutral level of 50 and touched 61.8 in Jan, up from 59 in Dec. The current sequence of uninterrupted increases was stretched to two-and-a-half years. According to survey participants, growth was spurred by demand buoyancy, productivity gains and rising intakes of new work. The 50-point mark separates expansion from contraction. The survey is compiled from responses to questionnaires sent to a panel of around 400 service sector companies.

New business placed with Indian service providers increased at the fastest rate in six months during Jan. Advertising, positive demand trends and new client wins reportedly fuelled sales, according to the survey results. Underlying data also showed a sharp upturn in new export orders at service providers in Jan, the strongest in three months. Monitored firms signalled gains from clients across the globe, including Afghanistan, Australia, Brazil, China, Europe, the UAE and the US.