New Delhi, Jan. 7 -- The purchasing managers' index (PMI) for Indian services in December released on Tuesday mirrors the trend in manufacturing, with the year ending on a note of moderation. The reading dipped to an 11-month low of 58.0 from 59.8 in November. The PMI for manufacturing reported days earlier fell to 55.0 from 56.6 over the same period.

This should, however, be seen as a cool-off rather than a slump. At current levels, both PMI readings are well above the 50 mark, reflecting expansion in activity. Overall, 2025 has been a good year for India's economy. High growth amid low inflation has made for a "Goldilocks" scenario despite export headwinds created by sharply hiked US tariffs.

Since the services sector contributes the ...