India's private sector expanded for the ninth consecutive month in January, survey figures from Markit Economics and HSBC showed Wednesday.
The HSBC Composite Purchasing Managers' Index rose to 53.3 in January from 52.9 in the previous month. Any reading above 50 indicates expansion in the sector. Nonetheless, the latest increase was solid overall, but weaker than the historical average.
The seasonally adjusted services PMI climbed to 52.4 in January from 51.1 in December. The latest increase in activity reflected further growth of new business during the month.
New business received by the service sector increased for the ninth straight month in January. At the same time, new order growth at manufacturers eased during the month, but still solid overall across the private sector.
Despite solid growth of activity and new business, staffing levels in the Indian service sector rose only nominally in January. Moreover, the rate of job creation was slower than the historical average.
Jobs creation also increased marginally at goods producers and across the private sector overall.
On the price front, input prices in the service sector rose for the second straight month in January, having fallen for the first time in more than five-and-a-half years in November.
Selling prices also increased further and inflationary pressures on selling prices intensified to the most pronounced since July 2014.
Similarly, private sector input costs increased at the quickest pace since August, contrasting with weaker cost pressures at goods producers. Output price inflation at manufacturers remained marginal in January.
"We expect RBI to cut rates by a total of 75bp in 2015, but no further as latent inflation pressures could pick up when growth sees a meaningful lift," Pranjul Bhandari, chief India economist at HSBC said.
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