HSBC PMI: Service sector output drops in December for 6th consecutive month
The HSBC Services Purchasing Managers’ Index (PMI), compiled by Markit, fell to 46.7 in December from 47.2 in November, registered the sixth consecutive monthly drop in output levels, the longest period of continuous reduction since the 2008/2009 global financial crisis.
- The sharpest decline in new orders was noted in hotels and restaurants. The post and telecommunications sub-sector remained resilient, with growth in both business activity and new orders.
- The HSBC/Markit manufacturing PMI showed India’s manufacturing sector decelerated marginally to 50.7 in December as a slowdown in domestic order flows led to slower output growth.
- Thus, the HSBC India Composite Output Index, which maps both services and manufacturing, stood at 48.1, below the crucial 50 mark, for the sixth consecutive month.
- The index dropped from November’s 48.5, indicating a slightly faster rate of contraction.
Note: An index value of less than 50 indicates contraction.