<p>Bengaluru: India's dominant services sector ended 2024 on a high note as sustained demand boosted activity to a four-month high and led to strong hiring in December, while inflationary pressures eased, a survey showed.</p>.<p>The HSBC final India Services Purchasing Managers' Index, compiled by SP Global, rose to 59.3 in December from 58.4 in November, its highest since August but lower than a preliminary estimate of 60.8.</p>.<p>Activity in the sector has been in expansionary territory for more than three years. A 50-mark separates contraction from growth.</p>.Manufacturing PMI slips to 12-month low on weak demand.<p>The new business sub-index - a gauge of demand - rose at the fastest pace in four months. It was also supported by solid global demand.</p>.<p>High demand and expanded capacities kept confidence high for the year ahead. Business optimism stayed firm and above last year's average but below November's six-month high.</p>.<p>"Forward-looking indicators such as new business and future activity suggested that the strong performance will likely continue in the near future," noted Ines Lam, economist at HSBC.</p>.<p>Soaring business confidence resulted in robust hiring. Firms continued to add workers at one of the strongest paces since the survey began in 2005. But it slowed from November's 19-year high.</p>.<p>Inflationary pressures eased as both the sub-indexes, input prices and prices charged, fell. Input prices eased from November's 15-month high but were still elevated as firms paid more for food, labour and material.</p>.<p>Service providers passed on some of the extra costs to their clients, although at a slower pace than a near 12-year high in November.</p>.<p>"The easing of input price inflation in the month also supported business sentiment. Strength in the services PMI stands in contrast with the growing signs of a slowdown in the manufacturing industry," added Lam.</p>.<p>Strong growth in services activity offset a decline in manufacturing growth and boosted the overall Composite PMI to 59.2 last month from 58.6 in November.</p>
<p>Bengaluru: India's dominant services sector ended 2024 on a high note as sustained demand boosted activity to a four-month high and led to strong hiring in December, while inflationary pressures eased, a survey showed.</p>.<p>The HSBC final India Services Purchasing Managers' Index, compiled by SP Global, rose to 59.3 in December from 58.4 in November, its highest since August but lower than a preliminary estimate of 60.8.</p>.<p>Activity in the sector has been in expansionary territory for more than three years. A 50-mark separates contraction from growth.</p>.Manufacturing PMI slips to 12-month low on weak demand.<p>The new business sub-index - a gauge of demand - rose at the fastest pace in four months. It was also supported by solid global demand.</p>.<p>High demand and expanded capacities kept confidence high for the year ahead. Business optimism stayed firm and above last year's average but below November's six-month high.</p>.<p>"Forward-looking indicators such as new business and future activity suggested that the strong performance will likely continue in the near future," noted Ines Lam, economist at HSBC.</p>.<p>Soaring business confidence resulted in robust hiring. Firms continued to add workers at one of the strongest paces since the survey began in 2005. But it slowed from November's 19-year high.</p>.<p>Inflationary pressures eased as both the sub-indexes, input prices and prices charged, fell. Input prices eased from November's 15-month high but were still elevated as firms paid more for food, labour and material.</p>.<p>Service providers passed on some of the extra costs to their clients, although at a slower pace than a near 12-year high in November.</p>.<p>"The easing of input price inflation in the month also supported business sentiment. Strength in the services PMI stands in contrast with the growing signs of a slowdown in the manufacturing industry," added Lam.</p>.<p>Strong growth in services activity offset a decline in manufacturing growth and boosted the overall Composite PMI to 59.2 last month from 58.6 in November.</p>