New Delhi New Delhi: India’s services sector growth slowed slightly as new order growth fell to a 13-month low amid a slow recovery in demand and rising inflation, a monthly survey said on Wednesday. The seasonally adjusted HSBC India Services PMI business activity index declined to 58.1 in February from 58.5 in January.
In Purchasing Managers’ Index (PMI) parlance, a print above 50 indicates expansion, while a score below 50 indicates contraction. “India’s services PMI stood at 58.1 in February, largely unchanged from January’s 58.5, indicating another month of strong growth for the sector. While new order growth slowed to a 13-month low amid increased competition, service providers saw strong growth in international sales and operational expansion,” said Pranjul Bhandari, HSBC’s Chief India Economist. “Responded by increasing hiring to meet needs.”
According to the panelists, higher client inquiries and marketing efforts supported sales at some units, while some companies said an increasingly competitive environment slowed growth. One area of better performance was exports, as services firms reported profits from many parts of the world, including Canada, Germany, Mainland China, Singapore, the UAE, the UK and the US. On average, international sales grew at the fastest pace since last August.
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