India’s February Services PMI: Growth Eases to 60.6

In February, India’s services sector maintained its growth path supported by positive demand trends. However, growth witnessed a slight moderation compared to January, with the Purchasing Managers’ Index (PMI) falling to a low. 61.8 to 60.6. Despite this decline, the sector remained well above the neutral mark of 50.0, indicating a faster rate of expansion.

1. Headline PMI figure

  • Purchasing Managers Index (PMI) for India’s services sector fell 60.6 in February from a six-month high of 61.8 in January.
  • Despite the decline, the index remained comfortably above the neutral mark of 50.0, indicating a faster rate of expansion well above the historical average.

2. Business Activity

  • Business activity expanded across all sectors, with finance and insurance experiencing the largest growth, while real estate and business services saw the slowest growth.

3. Employment growth

  • Companies created jobs due to increased workloads, although employment growth slowed due to reduced capacity pressures and low confidence in the outlook.

4. New orders and output

  • Growth in new orders and output in the services sector slowed, leading to an overall decline in the headline PMI figure.
  • Despite the slowdown, both metrics remained above long-term averages, indicating sustained demand.

5. International Sales

  • New business from overseas continued to increase for the thirteenth consecutive month, with gains reported from various regions, including Australia, Asia, Europe, the US and the United Arab Emirates.
  • International sales grew at a solid rate, one of the best performances in the series’ history.

6.Composite PMI Output Index

  • HSBC India Composite PMI Output IndexThe index, which includes both manufacturing and services, fell to 60.6 in February from 61.2 in January.
  • Despite some moderation since January, sales growth remained strong, with private sector output continuing to grow at a faster rate.

India's February service PMI: Growth rate declined to 60.6_40.1

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