India’s service sector sustained its growth trajectory through February, buoyed by robust demand trends, albeit at a slower pace compared to January. According to the latest data from the HSBC Purchasing Managers’ Index (PMI), released on Monday, the sector’s expansion remained historically significant despite a slight deceleration.
The HSBC India Services Business Activity Index, adjusted for seasonal variations, recorded a figure of 60.6 in February, marking a decrease from 61.8 in the previous month. Despite this moderation, the index comfortably maintained its position above the neutral mark of 50.0, indicating a substantial expansion for the sector. This growth rate surpasses the series history dating back to December 2005.
The report highlighted that February saw the second-weakest cost pressures in the services sector since August 2020. Additionally, there was a notable softening in the increase of selling charges, marking the most moderate rise in two years.
While the growth rate may have moderated compared to January, analysts remain optimistic about the resilience of India’s services sector, especially considering the challenging global economic environment. The continued expansion of the service industry is expected to contribute positively to India’s overall economic performance in the coming months.
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