India Services PMI Surges To A Five-Month High In April
The India Services Business Activity Index, compiled by IHS Markit, stood at 57.9 in April 2022 from 53.6 in March.
A gauge of India’s services sector surged to the highest since November as output rose even amid price pressures.
The India Services Business Activity Index, compiled by IHS Markit, stood at 57.9 in April 2022 from 53.6 in March, according to a media statement. A reading above 50 indicates expansion in business activity.
The Composite PMI Output Index, too, rose to 57.6 from 54.3 in March.
Output was boosted by higher bookings, easing of pandemic-related restrictions and favourable demand, the release said. Business inflows expanded in April, taking the current sequence of growth to nine months.
“The latest results showed a resurgence in price pressures during April. Service providers reported having paid more for food, fuel and materials, with some mentions of higher wage costs also pushing up overall expenses,” Pollyanna De Lima, economics associate director at S&P Global, said. “The overall rate of inflation quickened to the second-highest in the survey history, leading companies to hike their selling prices to the greatest extent in close to five years.”
Inflation concerns restricted business confidence in April. Although still positive, the overall level of sentiment slipped from March and was much lower than its long-run.