Mumbai, Jan 4 (IANS): New orders and easing of inflationary pressures pushed the output of the Indian service sector higher during December, key macro-economic data showed on Thursday.

According to the seasonally adjusted Nikkei India Services PMI Business Activity Index, the service sector's output returned to marginal growth during December due to growth in "Information & Communications and Finance & Insurance".

Subsequently, the seasonally adjusted index registered an overall increase from 48.5 in November to 50.9 in December.

An index reading of above 50 indicates an overall increase in economic activity and below 50 an overall decrease.

The impact of higher Services PMI accelerated the overall private sector's output during December -- the highest since October 2016 -- and greater than the average recorded in 2017.

Consequently, the seasonally adjusted Nikkei India Composite PMI Output Index rose to 53 in December from 50.3 in November.