India's Service Sector Growth Slows to 11-Month Low in December PMI

• India's Services PMI dropped to an 11-month low of 58.0 in December from 59.8, indicating a slowdown in the service sector's growth momentum.
• Despite the slowdown, the sector remains in expansion (PMI above 50); however, companies largely refrained from hiring new employees.
• Business optimism for future growth fell to a nearly three-and-a-half-year low, suggesting a potential softening of growth pace in the new year.
• New export orders saw a significant increase due to improved foreign demand from Asia, North America, the Middle East, and the UK.
• Raw material costs and service charges increased marginally, with the inflationary environment noted as being under control.

Why It Matters: India's service sector growth slowed in December, hitting an 11-month low, despite strong foreign demand.