India’s service sector has continued its upward journey, as indicated by the latest HSBC India Services Purchasing Managers' Index (PMI), which increased to a robust 59.2 in November from 58.5 in October 2024. This marks a significant jump and points towards a strong expansion in the sector. The PMI reading, which was last updated on November 22, 2024, highlights the sustained momentum within India’s service industries despite global economic uncertainties.
The increase to 59.2, above the seuil of 50 that separates growth from contraction, suggests that businesses in the service industry have experienced solid growth this month. The record figure reflects expansions in business activity and new orders, suggesting heightened demand and a positive business climate in the region.
This upswing in the service sector is pivotal as it holds a significant role in boosting India's overall economic performance. A thriving service sector not only contributes to employment growth but also supports increased consumer spending, which is crucial for the country’s continued economic expansion. With the service sector’s performance outpacing previous expectations, market participants will be closely watching to see if this upward trajectory continues into the coming months.