New Delhi: India’s services sector growth softened in April. But it but remained sturdy on robust domestic and foreign demand. The HSBC India Services Purchasing Managers’ Index (PMI), compiled by S&P revealed this.
As per data, the Services Purchasing Managers’ Index fell to 60.8 in April from 61.2 in March, confounding a preliminary estimate for a rise to 61.7. Despite the decline, the figure still marked one of the fastest growth rates in just under 14 years.
Activity in the services sector has been above the 50-mark separating growth from contraction since August 2021. The reading above 50 means expansion while a score below 50 denotes contraction.
‘India’s service activity rose at a slightly softer pace in April, backed by a further rise in new orders, with notable strength in domestic demand. Although new export orders remained robust, they showed a slight moderation from March,’ noted Pranjul Bhandari, chief India economist at HSBC.
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The HSBC Global India Services PMI is compiled from responses to questionnaires sent to about 400 service sector companies. The PMI data is an indicator of the health of the economy. It serves as a crucial economic health indicator.
India’s services sector is one of the fastest growing in the world. It contributes to over 50% of India’s GDP.
Meanwhile, India’s Manufacturing Purchasing Managers’ Index (PMI) dipped modestly to 58.8 in April, which combined with the small retreat in services activity, brought down the overall Composite PMI to 61.5 from March’s eight-month high of 61.8.
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