2018 begins with a glimmer of hope: Services sector growth improves in Dec

Combined services, manufacturing PMI fastest since demonetisation

India’s economy has a reason to cheer in the New Year with its biggest sector – services - rebounding to growth in December from contraction in November, though the expansion is moderate, according to a widely-tracked Nikkei Purchasing Managers’ Index (PMI).  With manufacturing sector posting five-year high growth in December, the combined expansion in the two sectors was the fastest since October 2016, the month of demonetisation.

Higher activities in services led to increased hiring by firms with jobs growth quickening to the fastest since September, the PMI survey of 400 private sector firms showed. However, effects of the goods