New Delhi, Feb. 5 -- India's services sector recovered in January, after hitting an 11-month low in December, as new business intake and output rose amid a demand push, a private survey showed on Wednesday. The HSBC India Services Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 58.5 in January from 58.0 in December. The index has remained above the 50-point threshold separating expansion from contraction for over four years, signalling the sector's sustained resilience despite headwinds. While growth has returned, input costs and selling prices rose at a more measured pace, and firms stayed optimistic about future prospects, the survey noted. Overall, input costs increased at the fastest pace since last September, albeit at a moderate pace below the long-run series trend, said the survey. "India's services PMI rose to 58.5 in January, up from 58.0 in December, signalling sustained momentum in the sector. Robust output growth was driven by a steady influx of new orders, including increased international demand from South and South-East Asia," said Pranjul Bhandari, HSBC's chief India economist. Granular data showed that finance and insurance topped the growth rankings for both output and new orders, despite being the only segment to post slowdowns since last December. The January data showed that the main source of new business gains was the domestic market, but international orders nevertheless rose solidly. "Moreover, the pace of expansion was the most pronounced in three months," said the survey. The HSBC India Services PMI draws on responses from roughly 400 companies across sectors such as consumer services (excluding retail), transport, information and communication, finance, insurance, real estate and business services. "India's services PMI rose to 58.5 in January, up from 58.0 in December, signalling sustained momentum in the sector. Robust output growth was driven by a steady influx of new orders, including increased international demand from South and Southeast Asia," said Pranjul Bhandari, chief India economist at HSBC. Business confidence climbed to a three-month high, supported by efficiency gains, effective marketing, and the acquisition of new clients, Bhandari said. The rise in services activity comes amid growth in India's manufacturing sector in January that overcame the blow received from US tariffs. "While input and output prices are rising, they remain fairly mild by historical standards. The composite PMI also strengthened in January, reflecting solid demand growth across both manufacturing and services," Bhandari added. The HSBC India Composite PMI Output Index also rose from last December's 11-month low of 57.8 to 58.4 in January. Amid the scaling up of the services sector in January, the progress of job creation remained marginal, though rising intakes of new work prompted service providers in India to resume hiring in January. Beyond the domestic factors, external risks persist, clouding the outlook for India's services industry. The conclusion of India-US trade deal, however, is expected to give a push to the services industry as well....