India’s services industry saw activity increase at its fastest pace in six months during the last month of 2022, a private sector survey shows, boosting business optimism despite higher costs.
The S&P Global India Services Purchasing Managers’ Index (PMI) (INPMIS=ECI) rose to 58.5 in December from 56.4 in the previous month, upsetting expectations of a decline to 55.5 in a Reuters poll.
The index was above the 50-mark separating growth from contraction for the 17th straight month – the longest stretch of growth since June 2013.
“As we move into 2023, companies signal strong optimism toward the outlook for output,” said Pollyanna De Lima, associate director of economics at S&P Global Market Intelligence.
“Inflation trends were mixed, as input prices rose at a faster pace and tariffs accelerated.”
Expenses rose sharply due to higher energy, food, staff and transportation costs, so charged prices continued to rise, albeit slightly lower than in November, when they rose at the fastest rate since July 2017.