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Informist, Friday, Apr. 4, 2025

 

--India Mar services PMI 58.5 vs 59.0 in Feb 

--India Mar composite PMI 59.5 vs 58.8 in Feb 

 

NEW DELHI - India's services sector activity grew at a slightly slower pace in March compared to the previous month, with the HSBC India Services Purchasing Managers' Index moderating to 58.5 from February's 59.0, S&P Global said on Friday. Services sector activity slowed down last month because international orders rose at the slowest pace since December 2023. Cost pressures receded to a five-month low and prices charged rose at the weakest rate since September 2021, S&P Global said. 

 

At 58.5, the final services PMI number for March is higher than the flash estimate of 57.7 released on Mar. 24. A PMI reading of more than 50 denotes expansion in activity from the previous month, while a print below 50 is indicative of contraction.

 

Services PMI averaged 58.0 in Jan-Mar, the lowest in nine quarters. Services PMI had averaged 58.7 in Oct-Dec. In contrast, manufacturing PMI rose to 58.1 March, the joint-highest in nine months, data released on Wednesday showed. Manufacturing PMI averaged 57.4 in Jan-Mar, higher than the previous quarter. Despite the fall in services PMI last month, the composite PMI rose to a seven-month high of 59.5 in March. 

 

The PMI prints for March could be a key consideration for Reserve Bank of India's Monetary Policy Committee to guage the extent of growth revival in the economy. The MPC will meet next week, where it is expected to lower interest rates by another 25 basis points, after it cut the repo rate by 25 bps to 6.25% in February.

 

"Domestic and international demand remained fairly buoyant, despite being sequentially a tick lower than the month before," Pranjul Bhandari, HSBC's chief India economist, said. "Meanwhile, job creation and charge inflation both cooled during March. Looking ahead, business sentiment remains generally positive, but intensifying competition presents a significant challenge to many survey participants."

 

Services sector firms surveyed by S&P Global cited fierce competition and fading cost pressures as the key reason behind the fall in charge inflation in March. Heightened competition was also a challenge to output prospects, S&P Global said.

 

Hiring activity across the service economy slowed down in March. Employment rose at the weakest pace in nearly one year in March, even as it remained well above trend pace. Several companies suggested that they had sufficient capacity for current requirements, S&P Global said.  End

 

Reported by Shubham Rana

Edited by Vandana Hingorani

 

 

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