<p>New Delhi: Services sector growth slumped to an over two-year low in January, dragged by lower demand and softer increase in sales and output, offsetting the positive momentum seen in factory output, an industry survey report released by S&P Global on Wednesday showed.</p>.<p>India’s Purchasing Managers’ Index (PMI) for services slipped to 56.5 in January, the lowest level since November 2022. In December 2024 it stood at 59.3. A PMI print above 50 indicates growth in the sector while below 50 shows contraction.</p>.<p>Sluggishness in the services sector, which accounts for more than half of India’s gross domestic product (GDP), will offset the positive momentum seen in the manufacturing sector. Manufacturing PMI increased to a six-month high in January, as per the S&P Global data released earlier this week.</p>.Increase in FDI limit in insurance sector to woo more foreign players: Moody's.<p>“India’s services sector lost growth momentum in January, although the PMI remained well above the 50-breakeven level,” said Pranjul Bhandari, Chief India Economist at HSBC.</p>.<p>Business activity and new business PMI indices eased to their lowest levels since November 2022 and November 2023, respectively.</p>.<p>“New export business partly countered the downtrend and continued to rebound from a dip in late-2024, in line with official data which showed India’s services exports shining in December and capturing a larger share of global trade,” Bhandari said.</p>.<p>In contrast to sluggish domestic orders, there was a quicker increase in international sales. Survey participants noted gains from clients in Asia, Europe, the Middle East and the Americas. The overall rate of expansion in international sales hit a five-month high in January. The PMI report is based on a survey conducted among around 400 service sector companies in the country.</p>.<p>As per the report, the expansion in private sector output in January was the slowest in 14 months.</p>.<p>“A pick-up in growth of factory orders contrasted with the weakest rise in services sales since November 2023,” S&P Global said.</p>.<p>For the third straight month, services companies noted stronger cost pressures than goods producers. Services companies reported an uptick in expenses due to a jump in staff costs and food prices.</p>.<p>However, business sentiment remained positive and job growth ticked higher. Improvements in new business intakes and rising capacity pressures prompted service providers to recruit additional staff. The rate of job creation in January was the fastest since data collection started in <br />December 2005.</p>
<p>New Delhi: Services sector growth slumped to an over two-year low in January, dragged by lower demand and softer increase in sales and output, offsetting the positive momentum seen in factory output, an industry survey report released by S&P Global on Wednesday showed.</p>.<p>India’s Purchasing Managers’ Index (PMI) for services slipped to 56.5 in January, the lowest level since November 2022. In December 2024 it stood at 59.3. A PMI print above 50 indicates growth in the sector while below 50 shows contraction.</p>.<p>Sluggishness in the services sector, which accounts for more than half of India’s gross domestic product (GDP), will offset the positive momentum seen in the manufacturing sector. Manufacturing PMI increased to a six-month high in January, as per the S&P Global data released earlier this week.</p>.Increase in FDI limit in insurance sector to woo more foreign players: Moody's.<p>“India’s services sector lost growth momentum in January, although the PMI remained well above the 50-breakeven level,” said Pranjul Bhandari, Chief India Economist at HSBC.</p>.<p>Business activity and new business PMI indices eased to their lowest levels since November 2022 and November 2023, respectively.</p>.<p>“New export business partly countered the downtrend and continued to rebound from a dip in late-2024, in line with official data which showed India’s services exports shining in December and capturing a larger share of global trade,” Bhandari said.</p>.<p>In contrast to sluggish domestic orders, there was a quicker increase in international sales. Survey participants noted gains from clients in Asia, Europe, the Middle East and the Americas. The overall rate of expansion in international sales hit a five-month high in January. The PMI report is based on a survey conducted among around 400 service sector companies in the country.</p>.<p>As per the report, the expansion in private sector output in January was the slowest in 14 months.</p>.<p>“A pick-up in growth of factory orders contrasted with the weakest rise in services sales since November 2023,” S&P Global said.</p>.<p>For the third straight month, services companies noted stronger cost pressures than goods producers. Services companies reported an uptick in expenses due to a jump in staff costs and food prices.</p>.<p>However, business sentiment remained positive and job growth ticked higher. Improvements in new business intakes and rising capacity pressures prompted service providers to recruit additional staff. The rate of job creation in January was the fastest since data collection started in <br />December 2005.</p>