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India's services activities growth rate in April fastest in 14 years, PMI data released
Services PMI: Survey members attributed the latest pick-up in output to favorable economic conditions, strong demand, and an increase in new jobs. In the language of the Purchasing Managers' Index (PMI), an index above 50 indicates expansion while below 50 indicates contraction.
The country's service sector grew at a slightly slower rate in April, but new business and production growth was at its fastest pace in 14 years due to robust demand and favorable economic conditions. From 61.2 in March to 60.8 in April, the HSBC India Services Business Activity Index decreased.
A rise in new jobs, robust demand, and favorable economic conditions were cited by survey participants as the reasons for the most recent uptick in production. An index above 50 denotes expansion and an index below 50 denotes contraction, according to the Purchasing Managers' Index (PMI).
Pranjal Bhandari, chief India economist at HSBC, said India's services activity grew at a slightly subdued pace in April on the back of further pick-up in new orders. Apart from a pick-up in domestic demand, firms also noted new trade gains from several parts of the world. International sales recorded the second fastest growth since the PMI series began in September 2014.
