New Delhi: The Indian service sector's health registers a faster upturn in new business boosting output growth.

The service industry have seen an increase in its activities at the fastest pace in six months since June 2022 due to robust demand.

The S&P Global India services purchasing managers' index (PMI) increased to 58.5 in December from 56.4 in November, crossing the 50-point threshold separating growth from contraction for the 17th consecutive month since June 2013.

According to a private survey, more jobs were created and companies remained strongly upbeat towards the year ahead outlook for business activity.

A sharp rise in firms' expenses were witness amid greater energy, food, staff and transportation costs — which led to a further increase in prices charged for the provision of services.

Although capacities came under pressure from robust intakes of new work, December data pointed to only a mild increase in outstanding business whereas the rate of growth quickened from November.

"Inflation trends were mixed, as input prices rose at a faster pace and the upturn in charges moderated.

On the expense front, services firms reported pressure from energy, food, staff and transportation costs. Although easing from November, the rate of output charge inflation remained elevated as several companies felt the need to transfer escalating costs through to clients," said Pollyanna De Lima, economics associate director at S&P Global Market Intelligence.

Positive sentiment and ongoing growth of new business continued to support job creation, but there were areas where capacities were reportedly adequate to cope with current requirements, added De Lima.

Predictions of further improvements in demand and marketing plans continued to support business confidence in December.

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