Mumbai, Feb 5 (IANS) Healthy demand conditions pushed Indian services sector’s output higher during January 2018, key macro-economic data showed on Monday.
Accordingly, the seasonally adjusted Nikkei India Services PMI Business Activity Index registered an overall increase from 51.7 in January to 50.9 in December, as the “Information & Communication” sub-sector continued to drive overall growth.
An index reading of above 50 indicates an overall increase in economic activity and below 50 an overall decrease.
However, higher Services PMI figure was unable to arrest the fall in the overall private sector’s output during January, as manufacturing production growth eased.
Consequently, the seasonally adjusted Nikkei India Composite PMI Output Index declined to 52.5 in January from 53 in December.
Commenting on the Indian Services PMI survey data, Aashna Dodhia, Economist at IHS Markit, and author of the report said: “The recovery across India’s service sector
continued during January, with growth in output picking up to the joint-strongest since June 2017 as underlying demand conditions improved.”
“Meanwhile, job creation accelerated to the second strongest in over six-and-a-half years, but, as firms struggled in receiving timely payments, the Goods
and Services Tax (GST) continued to be a key constraint to businesses and the service sector remained a laggard relative to its manufacturing counterpart.”