New Delhi, March 4 (IANS) India’s services sector continued to expand at a healthy pace in February, even as growth in new orders slowed amid rising competition, according to the latest data from the HSBC India Services PMI Business Activity Index.
The Services Purchasing Managers’ Index (PMI) stood at 58.1 in February, slightly lower than the 58.5 recorded in January.
A reading above 50 indicates expansion, which means the sector remained firmly in growth territory as the current financial year nears its end.
The report showed that output growth across India’s service economy was broadly stable. However, the pace of growth in new orders eased to a 13-month low, even though companies continued to report a sharp increase in overall demand.
Some firms said that higher client enquiries and stronger marketing efforts helped boost sales, while others pointed out that growing competition in the market limited faster expansion.
Pranjul Bhandari, Chief India Economist at HSBC, said the February PMI reading signalled another month of robust growth in the services sector.
She noted that although new order growth slowed due to rising competition, international sales saw a noticeable improvement. To meet operational needs, many service providers increased hiring during the month.
“India’s services PMI registered 58.1 in February, largely unchanged from January’s 58.5, signalling another month of robust expansion in the sector,” Bhandari noted.
The overall private sector activity also showed strength. The Composite PMI, which combines manufacturing and services data, rose to 58.9 in February.
This marked the fastest pace of growth in three months, supported by strong performance in the manufacturing sector.
Among different segments within services, finance and insurance once again emerged as the best-performing sector, recording the fastest growth in both output and new orders.
However, even here the pace of expansion moderated compared to earlier months. On the other hand, real estate and business services lagged behind other sectors in terms of output and new order growth.
–IANS
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