Economic Buzz: India services sector growth remains strong in February
The seasonally adjusted HSBC India Services PMI dropped slightly to 58.1 in February from 58.5 in January. Nonetheless, a score above 50.0 indicates expansion. The flash score was 58.4.
The growth in overall business activity was underpinned by efficiency gains, favorable underlying demand, rising sales, and tech projects, the survey said.
New orders logged a further sharp upturn in February, though the pace of growth eased to a 13-month low. Meanwhile, new export orders grew at the quickest pace in seven months amid more demand from Canada, Germany, mainland China, Singapore, the UAE, the UK, and the US.
On the price front, input price inflation accelerated to the highest level in two-and- a-half years, driven by higher costs for energy, labor, and commodities. Consequently, selling prices rose at the quickest pace in six months.
Looking ahead, Indian service providers remained confident about expected business activity over the next year, with the overall level of positive sentiment climbing to a one-year high.
The positive outlook was boosted by marketing initiatives and concerted efforts to broaden scope and presence across existing and new markets. Upgraded outlook forecasts encouraged companies to increase their workforce numbers in February.
The composite output index rose to 58.9 in February from 58.4 in January, indicating the fastest expansion in the Indian private sector in three months, buoyed by strong momentum in manufacturing.
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