Growth of India`s services sector hits 12-year high in February
India’s services sector expanded at the strongest rate in 12 years in the month of February amid improvement in new business intakes and favourable demand conditions. As per the survey report, the seasonally adjusted S&P Global India Services PMI Business Activity Index surged to 59.4 in February from 57.2 in January. Further, the S&P Global India Composite PMI Output Index -- which measures both manufacturing and services -- jumped to 59.0 in February from 57.5 in January.
The report noted that new orders placed with service providers rose further in February, with competitive pricing boosted sales. The latest upturn in sales was the nineteenth in consecutive months and the joint-strongest in 12 years. Although Indian service providers signaled a further increase in their expenses midway through the final fiscal quarter, the rate of input price inflation moderated to a 29-month low.
Meanwhile, the overall level of positive sentiment towards the year-ahead outlook for business activity was little-changed from January and remained below its long-run average. Marketing efforts and forecasts of demand resilience underpinned optimism, but some companies were concerned about competitive pressures and whether sales growth could be maintained.
