India's Service Sector Growth Hits 11-Month Low in December; PMI Dips to 58

• India's service sector growth slowed in December, with the Services PMI falling to an 11-month low of 58 from 59.8.
• Despite the decline, the Services PMI remains above the 50-mark, indicating continued expansion in service sector activity.
• The sector showed strong performance throughout 2024, with PMI readings often above 60, peaking at 62.9 in August.
• December's figures suggest a normalization of growth after a prolonged period of rapid expansion.
• In contrast, the manufacturing sector experienced a sharp decline, recording its slowest expansion in nearly two years due to tariffs and reduced global demand.

Why It Matters: India's service sector growth slowed in December but remains in expansion, while manufacturing declined sharply.