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Services activity sees 7-year high in January 2020

Services activity sees 7-year high in January 2020

By : Kaushik Subramanian

  |  6 Feb 2020 7:16 AM GMT


The latest Nikkei India Services Purchasing Managers Index (PMI)
marked that the PMI for January 2020 stood at 55.5 higher than 53.3 in December.
The 50 mark threshold separates the contraction and expansion.


In August 2019, the
growth in services peaked to a 43-month high of 54.7, followed by contraction
in the next two months. But, this was followed by a steady growth from
November.


The widely tracked Nikkei
India Services PMI released on Wednesday falls in line with increase in
manufacturing activity, which showed a steep upward growth in January.


Survey participants said
that the boom was largely attributed to the favourable market conditions and
good underlying demand. Consumer services growth saw the biggest boost, following
the pickup of transport and storage firms in the previous month.


Expansion was also
observed in ‘new work intakes’ which saw a 7 year high. Most new work orders
came from the domestic market, the survey observes.


However, high growth in
new business also saw high input inflation. Average input costs rose at the
fastest pace in 7 years.


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