India Services Growth Strongest In 5 Months

(RTTNews) - India's services activity expanded at the fastest pace in five months as output and new orders rose at quicker rates, final data compiled by S&P Global showed on Wednesday.

The seasonally adjusted HSBC India Services PMI climbed to 58.8 in April from March's 14-month low of 57.5. Nonetheless, a score above 50.0 indicates expansion. The flash score was 57.9.

The sales growth was boosted by competitive pricing, e-commerce, and particularly strong customer demand for relocation and logistics services, the survey said.

Total new orders grew at the quickest pace in five months, while international demand for Indian services weakened as the war in the Middle East and subdued inbound tourism dampened the expansion.

On the price front, input price inflation eased in April but remained strong amid greater costs for food, gas, and labor costs along with shortages of gas. The rate of selling price inflation moderated to a three-month low.

Indian service companies added workforce numbers as rising volumes of new business boosted the recruitment of short-term staff and junior-level trainees.

The composite output index climbed to 58.2 in April from 57.0 in March, indicating a faster expansion in Indian private sector output.