INSUBCONTINENT EXCLUSIVE:
sector slowed slightly in December, but firms hired at a faster clip on continuing optimism as new business and employment remained buoyant,
a private survey showed on Friday
The Nikkei/IHS Markit Services Purchasing Managers' Index declined to 53.2 in December from November's four-month high of 53.7, but remained
above 50 mark threshold that separates growth from contraction for seventh consecutive month.Activity among services firms also registered
strongest average quarterly performance during three months ending December in nearly three years, encouraging firms to hire at a faster
pace."India's service sector continued to enjoy positive levels of activity in December, with new business and employment remaining on an
upward path," said Pollyanna De Lima, principal economist at IHS Markit."However, except for jobs, rates of expansion slowed slightly to
form a somewhat disappointing end to 2018."The slowdown in pace of expansion in country's dominant sector - services firms - was largely
driven by a contraction in foreign demand for second straight month.A sub-index tracking overall demand in sector declined to 52.7 last
month from 53.3 in November.Slower services activity along with weaker growth in manufacturing sector led composite index to fall to 53.6
last month from a more than two-year high of 54.5 in November.However, optimism about future activity in services sector increased to a
three-month high, signaling a strong outlook for sector this year despite uncertainties around upcoming general election.Meanwhile, input
costs rose at its weakest pace since May 2017, but prices charged for provision of services rose again as firms sought to share additional
costs with their clients, pushing output prices up by a slightly faster pace.
