The IHS Markit India Services PMI rose to a five-month high of 53.3 in December 2019 from 52.7 a month earlier, easily beating market expectations of 51.4. Output growth accelerated to the second-strongest rate in over a year and new business rose the most since October 2016, while employment increased for the 28th month in a row and at a rate that, although modest, was the fastest since August. On the price front, input cost inflation was the highest in almost seven years, amid reports of higher charges for food, fuel, medical products and transport. As a result, output charge inflation hit a 22-month high. Lastly, business confidence strengthened, supported by marketing initiatives and favorable economic conditions. Services PMI in India averaged 51.34 points from 2012 until 2019, reaching an all time high of 57.50 points in January of 2013 and a record low of 44.60 points in September of 2013. source: Markit Economics
Services PMI in India is expected to be 49.80 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Services PMI in India to stand at 51.90 in 12 months time. In the long-term, the India Services PMI is projected to trend around 52.60 points in 2020, according to our econometric models.