India services PMI rises to one-year high in January: HSBC Markit

The growth in the country's services sector, which makes up for nearly 60 per cent of the country's economic output, witnessed significant pick up in new orders.

Besides, the private sector employment activity also increased for eleventh month running, it said.

The HSBC Services Business Activity Index rose to 57.5 in January, up from 55.6 in December, signalling a sharp expansion

in output, and one that was the fastest since January last year.

"Service sector activity continued to pick up pace led by a faster inflow of new business," HSBC Chief Economist for India & ASEAN Leif Eskesen said.

Growth in activity has how been sustained for 15 successive months in this sector but services firm were a little less optimistic about the outlook for the sector. The the degree of confidence of the services firm was the lowest registered in three months.

Overall, services firms in India remained optimistic regarding activity levels in the upcoming year, with around 42 per cent of services companies predicting overall activity at their units to increase, while just 3 per cent forecasting a decline.

Input prices at private sector companies in India rose for the 46th successive month during January, though the rate of price rise was much weaker than a year ago.

"Inflation readings held broadly steady, with fuel, raw material and labour cost pressures still simmering,"

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