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Informist, Wednesday, May 6, 2026

 

--India April services PMI 58.8 vs 57.5 in March

--India April composite PMI 58.2 vs 57.0 in March

 

NEW DELHI – India's services sector activity in April expanded at the highest pace in five months, fuelled by higher underlying demand and increased e-commerce activity, S&P Global said Wednesday. A shift by services companies to domestic suppliers amid supply chain disruptions due to the war in West Asia helped the pickup in activity, S&P Global said.

 

The HSBC India Services Purchasing Managers' Index rose to 58.8 in April from 57.5 in March. At 58.8, the final services purchasing managers' index for April was above the flash estimate of 57.9 that was released Apr. 23. A purchasing managers' index reading of more than 50 denotes expansion in activity from the previous month, while a print below 50 indicates contraction.

 

"Growth of international demand for Indian services lost strength," S&P Global, which compiles the purchasing managers' indices, said in a release. However, companies indicated that the war and subdued inbound tourism dampened the expansion, S&P Global said.

 

Amid the geopolitical uncertainties, the services companies reported another substantial increase in their operating expenses. "Despite slowing in April, the rate of inflation was one of the highest seen since November 2024," the release said.

 

Services companies' input costs rose at a softer rate in April, but were still among the highest in around a year-and-a-half, S&P Global said. "Input cost inflation moderated but remained elevated, while output price inflation stayed subdued, indicating that some firms are absorbing higher costs rather than passing them on," said Pranjul Bhandari, chief India economist at HSBC.

 

According to survey participants, sales improved due to competitive pricing, e-commerce and strong customer demand for relocation and logistic services. "Consumer Services led April's expansion in new orders and output, followed by transport, information & communication," S&P Global said.

The services companies were confident of a rise in output over the course of the next 12 months. "Optimism was supported by forecasts of demand growth, marketing initiatives and rising client enquiries," the release said. However, the persistent cost pressures arising from the war have dampened the level of positive sentiment from March among participants.

 

Despite the lingering uncertainties, companies recruited more workforce, especially short-term staff and junior-level trainees, due to the rising volumes of new businesses, S&P Global said. "Sustained hiring growth enabled firms to reduce outstanding business levels for the first time in four months. The rate of backlog depletion was only marginal, however."

 

The composite purchasing managers' index rose to 58.2 in April from 57.0 in March but remained among the slowest in two-and-a-half years, S&P Global said. This was almost in line with the flash estimate of 58.3. There was a faster expansion in Indian private sector output last month with both factory production and services activity regaining some of the momentum lost in March, S&P Global said.  End

 

Reported by Shweta

Edited by Akul Nishant Akhoury

 

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