For the PMI index, around 350 companies in the services sector and around 500 companies in the manufacturing field are surveyed. In December, the PMI services reading had reached a three month high.
“Activity in the services sector grew at a slower clip led by a deceleration in new business, but backlogs of work still increased.” Leif Eskesen, Chief Economist for India and ASEAN at HSBC said.
Economists had expected growth to pick up in the final quarter of the current fiscal year. But, though the manufacturing sector accelerated, the growth in the services sector is at a slow pace. In private sector companies, the input and output prices rose. The inflation rate was the highest in seven months.
“Input price inflation picked up notably, which was passed onto prices charged. The numbers underscore that the room for monetary policy easing is very limited.”, Eskesen said.
The panelists think that in the coming year, because of the improving global economy and the improved quality of services and marketing, the services sector will experience a growth.
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