India's Services Sector Rebounds in January; Hiring Remains Muted Despite Strong Demand

• India's services Purchasing Managers' Index (PMI) rose to 58.5 in January from 58 in December, marking the 54th consecutive month of expansion.
• The growth was primarily driven by a faster increase in new orders, including international demand from South and Southeast Asia, and improved export demand.
• Despite the overall activity uptick, job creation remained marginal, indicating near-stagnant labor market conditions.
• Input costs intensified, reaching their fastest pace since September, leading service providers to increase output charges.
• Business sentiment for the year ahead improved, and the Composite PMI also rose, signaling sustained economic expansion.