Financial News: India Services Growth Remains Strong In March

India Services Growth Remains Strong In March

(RTTNews) - India's service sector activity continued to expand strongly in March amid strong demand conditions, final data from S&P Global showed on Friday.

The HSBC final services Purchasing Managers' Index dropped to 58.5 in March from 59.0 in the previous month. However, a reading above 50 indicates expansion in the sector. The flash score was 57.7.

During March, the overall upturn was driven by buoyant underlying demand and ongoing increases in new business.

Despite rising at a slower pace than February, the growth in sales was sharp. The slowdown in growth was due to weaker sales gains in international sales as the new export orders grew at the softest pace in fifteen months.

On the price front, charge inflation eased to the lowest level in three-and-a-half years, thanks to fierce competition and the lowest input price inflation in three months.

Employment in the Indian service sector rose at an above-trend pace, albeit one that was the weakest in close to a year, as companies had sufficient capacity for current requirements.

"Looking ahead, business sentiment remains generally positive, but intensifying competition presents a significant challenge to many survey participants," Pranjul Bhandari, Chief India Economist at HSBC, said.

The composite output index climbed to a 7-month high of 59.5 in March from 58.8 in February, indicating a further strong month for Indian private sector activity.

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