Services PMI: There has been an improvement in the activities of the service sector due to the spurt in business activities and the renewed increase in employment. In April, it has reached a five-month high. The seasonally adjusted S&P Global India Services PMI business activity index rose to 57.9 in April. It stood at 53.6 in March, showing the fastest rate of expansion since November despite rising price pressure.
Production picks up in the service sector for the ninth consecutive month
This is the ninth consecutive month that the service sector has seen an expansion in production. The Purchasing Managers’ Index (PMI) above 50 indicates an increase in activity, while a drop below 50 indicates a decline.
PMI figures for services sector mostly encouraging – S&P Global
Paulina Di Lima, S&P Global’s associate director of economics, said while the PMI figures for the services sector are mostly encouraging, new business flows and production have been strengthened by increased demand. Service providers say they have to pay more for food, fuel and raw materials, Lima said, with some saying the increase in salary costs has increased overall expenses. The overall rate of inflation is at the second highest level since the start of the survey, forcing companies to increase the selling price, the survey said. has increased.
The pace of growth in the Indian service sector remains constant.
The survey said that despite the construction cost reaching a record high level, the pace of growth in the Indian service sector has remained constant. Selling prices have risen at the fastest rate since July 2017 and concerns over rising inflation are stifling business confidence.
Growth continues on the employment front
On the employment front, companies continued to recruit in April and employment increased for the first time since November. Companies that hired additional personnel said this was because of the continued growth in new business. Meanwhile, the overall PMI production index rose to 57.6 in April from 54.3 in March, marking the sharpest rise in the past five months.
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