India's services PMI jumps to highest in six months at 61.8 in January

According to the HSBC India Services PMI, new business placed with Indian service providers increased at the fastest rate in six months during January

India's services activity rose at the sharpest rate of expansion in January, a report released on Monday showed. 

The HSBC India Services PMI came in at 61.8 in January, up from 59 in December. It is the highest since July 2023 when the PMI was 62.3. A reading above 50 shows that the sector is expanding.  

In India, the service sector has been expanding for two and a half years now. 

"India's services PMI rose to a six-month high in January. New business expanded at a faster pace and managers' expectation for future activity was strong," said Ines Lam, economist at HSBC. 

READ: India's manufacturing PMI rises to four-month high of 56.5 in January

According to the report, new business placed with Indian service providers increased at the fastest rate in six months during January. "Advertising, positive demand trends and new client wins reportedly fuelled sales," it said. 

The data also showed an uptick in new export orders. In January, such orders were the highest in three months. The top clients were Afghanistan, Australia, Brazil, China, Europe, the UAE and the US.

"The new export business index accelerated, signalling that India's services exports remained robust," added Lam. 

The report further revealed that the rate of inflation was the fastest in five months, owing to higher food, freight and salary costs. However, jobs increased in January, the highest in three months.