India services growth picks up in April on strong domestic demand, PMI shows
- Operating expenses rose at a softer pace in April
BENGALURU: India’s services sector growth picked up in April after falling to a 14-month low in March, driven by strong demand at home that offset slowing global orders, but optimism about the year ahead fell on Middle East uncertainties, a survey showed on Wednesday.
The HSBC India Services Purchasing Managers’ Index, compiled by S&P Global, rose to 58.8 in April from 57.5 in March, higher than a preliminary estimate of 57.9. The index has been above the 50.0 mark separating growth from contraction since mid-2021.
Growth in new business - a gauge of demand – accelerated to the strongest pace in five months in April. Consumer services led the expansion in new orders and output, followed by transport, information and communication.
However, international sales growth weakened to the second-slowest pace in more than a year. Companies linked the slowdown to the Middle East war and subdued inbound tourism.
India collects 2.43 trillion rupees in goods and services tax in April
Operating expenses rose at a softer pace in April, easing from an almost four-year high in March, yet remained steep on higher costs for food, gas and labour.
Firms appear to have absorbed much of the additional cost burden as selling prices rose only moderately and at the slowest pace in three months.
Rising volumes of new business boosted recruitment of short-term staff and junior-level trainees, with employment expanding at the strongest pace in 10 months.
The overall composite PMI index, which tracks both manufacturing and services, rose to 58.2 in April from 57.0, signalling an historically strong rate of expansion in private sector activity.
Comments