representative image. file | Photo Credit: The Hindu Bureau
The Indian services sector grew at the strongest rate in 12 years in February, supported by favorable demand conditions and fresh business gains, said a monthly survey on March 3.
The seasonally adjusted S&P Global India Services PMI business activity index rose from 57.2 in January to 59.4 in February – its highest level in 12 years.
For the 19th consecutive month, the headline figure was above the neutral 50 range. In Purchasing Managers’ Index (PMI) parlance, a print above 50 means expansion while a score below 50 indicates contraction.
Economics, Pollyanna de Lima said, “The services sector regained the growth momentum it lost in January, registering the fastest expansion in output for 12 years, as demand resilience and competitive pricing policies combined to boost sales.” Highlighted the best growth.” Associate Director at S&P Global Market Intelligence.
On the prices front, cost pressures eased significantly as input prices rose at the slowest pace in nearly two-and-a-half years and output charge inflation eased to a 12-month low.
New orders placed with service providers rose further in February, the survey said, with many firms suggesting that competitive pricing boosted sales. Nevertheless, capacity pressures remained mild and jobs grew modestly.
“Despite strong growth in new businesses, service providers saw only a slight strain on their capacities and as a result, a vast majority of firms left payroll numbers unchanged,” Ms Lima said. Lack of trust in the business environment.
The degree of optimism recorded in February was the lowest for seven months and well below the historical trend as some companies were skeptical that demand would remain so resilient. Others expressed concerns about fierce competition for new work.
Rise in S&P Global India Composite PMI Output Index
Meanwhile, the S&P Global India Composite PMI Output Index – which measures combined services and manufacturing output – rose from 57.5 in January to 59 in February, reflecting a faster and stronger rate of expansion.
“Services firms reported faster growth in new business than their manufacturing counterparts. At the aggregate level, sales grew at the joint-fastest rate in 11 years,” the survey said.
The S&P Global India Services PMI is compiled from responses to a questionnaire sent by S&P Global to a panel of approximately 400 service sector companies. The panel has been stratified on the basis of contribution to GDP, sector wide and the size of the company’s workforce. Data collection began in December 2005.