The performance of the services sectors pushed overall output in India’s private sector to the highest level since July 2010, with overall sales also growing at the fastest pace in nearly 13 years. File photo | Photo credit: The Hindu
India’s services sector recorded its highest growth in new business and output levels since June 2010 this April, according to the seasonally-adjusted S&P Global India Services PMI® Business Activity Index, led by a strong jump in the finance and insurance segments. Because of, which turned from one. Decreased from 57.8 in March to 62 in April.
A reading of 50 on the index indicates no change in business activity levels
New export orders grew for the third month in a row and at the fastest pace during the period. However, job creation remained negligible in April and input cost inflation, which had hit a two-and-a-half-year low in March, rose again to a three-month high as firms raised costs on food, fuel, medicine gave information. , transport and wages.
Consumer service firms posted the fastest increase in average spending, but all service sectors grew sales value at the fastest pace in 2023, with transportation, information and communications businesses driving the fastest value growth, according to survey-based monthly indicator .
Business confidence, which had fallen to an eight-month low in March, revived slightly in April. S&P Global said nearly 22 per cent of the companies surveyed forecast an increase in business activity during the coming 12 months, while 2 per cent expected a decrease.
“India’s services sector recorded a remarkable performance in April, supported by the strongest growth in new business and output in just over 13 years,” said Pollyanna De Lima, associate director of economics at S&P Global Market Intelligence.
“One area of weakness highlighted in the latest results was the labor market. Despite a substantial uptick in sales growth and improved business sentiment towards the outlook, employment growth seen in April was negligible and failed to gain meaningful traction,” she said. Said.
Outstanding trading volume increased for the sixteenth straight month, but increased “modestly” in April, marking the slowest increase in sixteen months.
The performance of the services sectors pushed overall output in India’s private sector to the highest level since July 2010, with overall sales also growing at the fastest pace in nearly 13 years. The S&P Global India Composite PMI Output Index rose to 61.6 in April from 58.4 in March. The S&P Global Manufacturing PMI hit a four-month high of 57.2 in April.
“Despite substantial growth in sales, job creation in the private sector remained tepid. Expansion rates were broadly similar to those of manufacturing firms and their services counterparts,” S&P Global underlined.