The services growth dipped slightly in January to 57.2 from 58.5 in December, with softening orders spurring caution in companies’ business outlooks for the year.

“After re-accelerating in December, input cost inflation in the service economy retreated to a two-year low in January, aiding a slower and only moderate upturn in selling prices,” Pollyanna De Lima, economics associate director at S&P Global Market Intelligence.

Despite easing from December, the S&P Global India Services PMI Business Activity Index figure remained above its long-run average (53.5) and the upturn was associated with favourable demand conditions and ongoing increase in new work.

For the 18th straight month, the headline figure was above the neutral 50 threshold. In PMI parlance, a print above 50 means expansion while a score below 50 denotes contraction.