uploads///India Services PMI in December

India’s Services PMI Entered the Expansion Zone in December 2017

By

Jan. 23 2018, Published 12:15 p.m. ET

India’s services PMI in December

According to data provided by Markit Economics, the final Markit services PMI (purchasing managers’ index) for India strengthened in December 2017. It stood at 50.9 in December 2017 compared to 48.5 in November, and it beat the preliminary market estimate of 50.0.

The services PMI entered the expansion zone after its services activity contracted in November.

The stronger services PMI in December was due to the following factors:

  • Production volume and output showed strong improvement in December compared to November 2017.
  • New business orders also stabilized in December after declining strongly in November 2017.
  • The employment levels in the service sector improved in December 2017.
Article continues below advertisement

Economic impact and market performance

After the implementation of GST (goods and services tax) in July 2017, the service industry showed a huge fall in performance. Confusion about the tax rate among consumers and businesses subdued domestic orders and export orders during the past five months.

However, the situation is improving. December’s services PMI report showed strong improvement in the export orders, which pushed up the overall service activity in the economy.

In the previous article, we saw that India’s (INDA) equity market showed strong improvement in December 2017. India’s NIFTY 50 index rose 3.0% during the month. 

ETFs representing major developed nations (EFA) include the SPDR S&P 500 ETF (SPY) (SPX-INDEX) and the PowerShares QQQ ETF (QQQ), which rose 1.2% and 1.5%, respectively, in December 2017.

In the next part of this series, we’ll analyze the performance of China’s manufacturing PMI in December 2017.

Advertisement

More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.