Healthy demand buoys India’s Feb service sector growth: PMI

New Delhi, March 4 (SocialNews.XYZ) Healthy demand as well as easing Covid-19 restrictions sequentially accelerated India's service sector growth in February 2022.

Accordingly, the seasonally adjusted India Services Business Activity Index came in at 51.8 (index reading) for February, higher than 51.5 in January.

The PMI ranges between 0 and 100, with a reading of above 50 indicating an overall increase compared to the previous month.

Besides, the headline figure pointed to a moderate rate of expansion that was marginally quicker than in January.

The upturn was attributed by panellists to greater bookings, better demand conditions and the retreat of the pandemic, the IHS Markit India Services PMI report said.

According to survey participants, marketing efforts, demand resilience and new client wins boosted sales.

"There were, however, signs that growth was hampered by input shortages, the pandemic and local elections," the report said.

"International demand for Indian services remained subdued in February, as indicated by a further decline in new business from abroad."

On consolidated manufacturing and services level, the Composite PMI Output Index rose from 53.5 in February to 53 in January.

"Manufacturing firms recorded a notably stronger increase in business activity than their services counterparts, although rates of expansion quickened in both cases."

"Similarly, new orders increased at quicker rates among services companies and goods producers, with the latter seeing the sharper rise. At the composite level, the rate of expansion remained below trend, despite improving from January's six-month low."

Source: IANS