Services Sector Rising
A Growth in India’s services firms rose at its fastest pace in 10 months in December as demand picked up, a business survey showed on Wednesday. The Nikkei/Markit Services Purchasing Managers’ Index surged to 53.6 in December from November’s 50.1, marking a sixth month above the 50-level that separates growth from contraction. That should provide some comfort to policy makers after a related survey showed India’s factory activity contracted for the first time in more than two years on dwindling demand.
stronger rise in new business and an improvement in year-ahead expectations at service providers are positive developments, but the overall health of the economy remains fragile amid a weak manufacturing sector,” said Pollyanna De Lima, economist at Markit.