India’s services sector growth hits 13-and-a-half-year high in March

New Delhi: India’s services sector growth rose to13-and-a-half-year high in March.  The HSBC India Services Purchasing Managers’ Index (PMI), compiled by S&P revealed this.

As per data, the Services Purchasing Managers’ Index rose sharply to 61.2 in March from 60.6 in February. The index hit a six-month peak of 61.8 in January. The March figure beats HSBC’s projection of 60.3, mentioned in its Services PMI Business Activity Index last month.

The reading has remained above the 50 mark for 32 months. The reading above 50 means expansion while a score below 50 denotes contraction.

The HSBC Global India Services PMI is compiled from responses to questionnaires sent to about 400 service sector companies. The PMI data is an indicator of the health of the economy. It  serves as a crucial economic health indicator.

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India’s services sector is one of the fastest growing in the world. It  contributes to over 50% of India’s  GDP.

Meanwhile, the HSBC India Composite PMI Output Index rose to 61.8 in March from 60.6 in February, highlighting the second-strongest upturn in over 13 and half years (behind July 2023).

Meanwhile, India’s Manufacturing Purchasing Managers’ Index (PMI) touched a  16-year high in March. The  HSBC India Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global stood at 59.1 in March. This surge is due to strong increases in  new orders, output and input stocks, as well as renewed job creation.

The  HSBC India Manufacturing Purchasing Managers’ Index (PMI) touched a 5-month high in February.  It was at 56.9 in February. It was 56.5 in January, recovering from an 18-month low of 54.9 in December. However, the latest reading is a tad lower than the 59.2 estimated by HSBC for March in its Flash India Manufacturing PMI last month.

The PMI is a weighted average of the five indices, namely  New Orders (30%), Output (25%), Employment (20%), Suppliers’ Delivery Times (15%), and Stocks of Purchases (10%). The index is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers.