The S&P India Services PMI rose to 57.9 in April, from 53.6 in March; Largest drop in export orders since September 2021
The S&P India Services PMI rose to 57.9 in April, from 53.6 in March; Largest drop in export orders since September 2021
According to the S&P Global India Services PMI, new business and production from India’s services sector grew at the fastest pace in five months in April, even as sales prices grew at the fastest rate since July 2017. Amid an almost record increase in the number of cases, which rose from 53.6 in March to 57.9 in April.
Inflation concerns continue to dampen business confidence, even as employment According to the survey-based index, there has been an increase for the first time in five months. A reading of 50 on PMI indicates no change in business activity.
“International demand for Indian services worsened in April, a trend that has been recorded every month since the onset of COVID-19 in March 2020. New orders from overseas fell at a remarkable pace which was the fastest since September 2021,” S&P Global said.
Real estate and commercial services sectors were the only ones reporting contraction in new orders and output during April, while consumer services, finance and insurance were the best performers.
Businesses reported higher chemical, food, fuel, labour, material and retail costs in April, with overall inflation in inputs rising at the second-strongest pace since PMI data collection began in 2005. Some firms also reported higher wage costs, which increased overall spending. ,
“Nevertheless, companies resumed their hiring efforts in April, as seen by the first increase in employment since last November. The numbers that took on additional staff are linked to the ongoing growth of new business,” the firm said.
Polyana de Lima, associate director of S&P Global Economics, said the service economy followed manufacturing after gaining a growth spurt at the beginning of fiscal year 2022-23. “In isolation, the PMI data for the services sector was mostly encouraging, as rising demand dampened new trade flows and the sharp increase in output,” she said.
Price pressure resumed in April, Ms. de Lima said, with leading companies increasing their selling prices to the largest extent in nearly five years.
The consumer services sector experienced the fastest increase in input costs, while the transportation, information and communication sectors reported the highest pass-through of costs to retail consumers.