Economic Buzz: India Services PMI Continues To Expand In March

6 Apr 2022 , 12:33 PM

Posting 54.3 in March, up from 53.5 in February, the S&P Global India Composite PMI Output Index highlighted the strongest rate of expansion in 2022 so far. Manufacturers signalled a sharper increase than service providers, but growth slowed among the former and accelerated at the latter.

Following a substantial slowdown in growth at the start of the year amid the new wave of COVID-19, service sector growth in India continued to recover in March as containment measures were lifted. Firms recorded the fastest expansions in sales and activity in 2022 so far, while business confidence remained subdued due to inflation concerns. Input costs increased at the sharpest pace in 11 years at the end of fiscal year 2021/22, but companies mostly absorbed additional cost burdens and raised their charges only moderately

Meanwhile, rising from 51.8 in February to 53.6 in March, the seasonally adjusted S&P Global India Services PMI Business Activity Index pointed to the strongest rate of expansion since last December. According to panel members, the upturn stemmed from new business wins, strengthening demand conditions and greater consumer footfall due to the relaxation of COVID-19 restrictions.

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