Mumbai Jan 4 (IANS) Improved demand conditions and easing of inflationary pressures pushed the output of the Indian service sector higher during December key macro-economic data showed on Thursday.
According to the seasonally adjusted Nikkei India Services PMI Business Activity Index the service sector s output returned to marginal growth during December due to growth in "Information & Communications and Finance & Insurance".
Subsequently the seasonally adjusted index registered an overall increase from 48.5 in November to 50.9 in December.
An index reading of above 50 indicates an overall increase in economic activity and below 50 an overall decrease.
"India s service economy showed signs of recovery as it returned to marginal expansion in December. That said it remained on a weak growth trajectory amid reports that the Goods and Services Tax (GST) was still hindering efforts to secure new clients " said Aashna Dodhia Economist at IHS Markit and author of the report.
"Greater backlogs continued to accumulate as a result of cash shortages and delayed payments that stemmed from the disruption of recent structural reforms."
Further the Services PMI resulted in the overall private sector s output -- rising the highest since October 2016 -- and greater than the average recorded in 2017.
Consequently the seasonally adjusted Nikkei India Composite PMI Output Index rose to 53 in December from 50.3 in November.
On Tuesday the data on manufacturing sector s activity showed an expansion in December 2017 due to accelerated increase in output and new orders.
The Nikkei India Manufacturing Purchasing Managers Index (PMI) a composite indicator of manufacturing performance increased to 54.7 in December 2017 from 52.6 reported for November.
--IANS
rv/dg
