Services activity at 7-year high in January as new orders zoom: Survey

The services sector began the year with a bang as new orders in January rose at the fastest pace in seven years, dwarfing December’s five-month high growth, according to a survey released on Wednesday.

The widely tracked Nikkei India Services Purchasing Managers Index (PMI) stood at 55.5 in January, up from 53.3 in December. In PMI parlance, the 50-mark threshold separates expansion from contraction.

New international business also pushed the sector’s output to a similar seven-year high during the month. This would allow firms to recuperate from the high volatility in 2019, when the sector saw the PMI contract during three months,