ENA Economy 2025-01-06 16:42:20 <p><span style="font-size:14px"><strong>New Delhi, Jan 6 (KNN)</strong> Business activity in India demonstrated renewed vigour in December 2024, primarily propelled by robust demand in the services sector, despite a concurrent slowdown in manufacturing growth.</span></p> <p><span style="font-size:14px">According to the latest HSBC India Services Purchasing Managers' Index (PMI), compiled by S&amp;P Global, the index climbed to 59.3 in December from 58.4 in November, marking its highest level in four months.</span></p> <p><span style="font-size:14px">The survey, which gathered data from 400 service providers, revealed that the sector has maintained its expansion streak for 41 consecutive months, consistently remaining above the crucial 50-point threshold that separates growth from contraction.</span></p> <p><span style="font-size:14px">The surge in business activity was accompanied by increased workforce recruitment, as companies responded to heightened demand pressures.</span></p> <p><span style="font-size:14px">The survey highlighted that new orders reached their highest levels since August 2024, with companies citing strong underlying demand as the primary driver of output growth.</span></p> <p><span style="font-size:14px">Cost pressures showed signs of moderation, though businesses continued to report higher expenses related to food, labour, and materials, while the pace of selling price inflation also decelerated during the month.</span></p> <p><span style="font-size:14px">The services sector, which accounts for more than half of India's gross domestic product, has played a crucial role in the nation's economic trajectory.</span></p> <p><span style="font-size:14px">While India's economy demonstrated remarkable resilience with an 8.2 per cent growth in fiscal year 2023-24, exceeding the Reserve Bank of India's projection of 7 per cent, recent quarters have shown signs of moderation.</span></p> <p><span style="font-size:14px">The economy experienced a slowdown to 6.7 per cent growth in the first quarter of 2024-25, followed by a further deceleration to 5.4 per cent in the second quarter, marking the slowest pace in nearly two years.</span></p> <p><span style="font-size:14px">This downward trend has been attributed to weakening manufacturing activity, subdued urban consumption, and lower-than-expected corporate earnings.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 40532 https://knnindia.co.in/news/newsdetails/economy/services-surge-drives-indias-business-activity-in-december-manufacturing-slows 2025-01-06 16:42:20 knnindia.co.in