New Delhi, May 6 (IANS) India’s services sector continued to grow in April, with the Services Purchasing Managers’ Index (PMI) rising slightly to 58.7 from 58.5 in March, an HSBC report said on Tuesday.
A PMI reading above 50 indicates expansion, while anything below signals contraction.
The increase points to steady improvement in the services sector, supported by a sharp rise in new business orders, according to HSBC India Composite PMI Output Index.
Many companies reported strong market demand and successful marketing strategies, while others said they were able to handle more work due to better efficiency.
The finance and insurance sector led the growth, showing the highest gains in both output and new orders.
Export demand also picked up significantly. After a temporary slowdown in March, new export orders rose at their fastest pace since July 2024, driven by increased interest from markets in Asia, Europe, West Asia, and the United States.
This contributed to improved margins for service providers, as easing cost pressures allowed companies to raise prices at a quicker pace.
Pranjul Bhandari, chief India economist at HSBC, said services activity picked up pace in April, thanks to rising new export orders and improved pricing power.
However, while businesses remained hopeful about future growth, their overall confidence dipped slightly.
The broader economic picture also looked positive. India’s Composite PMI — which combines services and manufacturing data — rose to 59.7 in April from 59.5 in March, marking the sharpest rate of growth since August 2024.
This suggests that private sector activity, driven by both strong services and manufacturing performance, expanded at the fastest pace in nine months, the report said.
Manufacturing also showed improvement, with the HSBC India Manufacturing PMI inching up to 58.2 from 58.1 in March, hitting a 10-month high.
This follows a 14-month low in February. The rebound in April was fuelled by higher production, more hiring, and increased purchasing of inputs.
Meanwhile, India’s Index of Industrial Production (IIP) showed modest recovery in March, rising to 3 per cent after hitting a six-month low of 2.72 per cent in February.
–IANS
pk/na
Disclaimer
The information contained in this website is for general information purposes only. The information is provided by BhaskarLive.in and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.
Through this website you are able to link to other websites which are not under the control of BhaskarLive.in We have no control over the nature, content and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, BhaskarLive.in takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
For any legal details or query please visit original source link given with news or click on Go to Source.
Our translation service aims to offer the most accurate translation possible and we rarely experience any issues with news post. However, as the translation is carried out by third part tool there is a possibility for error to cause the occasional inaccuracy. We therefore require you to accept this disclaimer before confirming any translation news with us.
If you are not willing to accept this disclaimer then we recommend reading news post in its original language.
