Services PMI Continues To Rise On Buoyant Demand, Exports At Series High
The combination of rising cost pressures and demand strength encouraged companies to lift their selling prices in March.
A gauge of India's services sector continued to rise, led by buoyant demand.
The seasonally adjusted HSBC India Services PMI rose to 61.2 in March from 60.6 in February, according to a statement on Thursday, pointing to one of the strongest growth rates seen in over 13-and-a-half years. A figure above 50 indicates expansion.
The HSBC India Composite PMI Output Index rose to 61.8 in March from 60.6 in February, the second-strongest upturn in over 13-and-a-half years.
For services, the upturn was largely attributed to healthy demand conditions, efficiency gains and positive sales developments. companies signalled a substantial improvement in new order intakes during March, with better demand for Indian services from domestic and international sources.
New export business rose at the fastest rate since the series started in September 2014, with survey participants reporting gains from Africa, Asia, Australia, Europe and the Middle East. Finance and Insurance topped the growth rankings.
Amid reports of higher labour and material costs, there was an increase in overall expenses at services firms. The rate of input price inflation was marked, faster than that seen in February and above its long-run average.
The combination of rising cost pressures and demand strength encouraged companies to lift their selling prices in March. The rate of charge inflation climbed to its highest since July 2017. The highest rate of input cost inflation was seen in consumer services, while finance and insurance topped the rankings for selling prices.
Service providers recruited additional staff in March. The latest increase in employment was the joint-strongest since November 2022.
Business sentiment remained strongly positive but slipped to a four-month low. Firms expect demand trends to remain favourable, with marketing efforts also seen as a growth opportunity. However, there were some concerns surrounding competitive pressures.
