According to the latest data from S&P Global, India's service sector experienced significant expansion, reaching one of the highest rates in thirteen and a half years. This growth was largely driven by robust demand conditions.
In March, the HSBC services purchasing managers' index, a key indicator of economic activity, climbed to 61.2 from 60.6 in February. Any score over 50 signifies a growth in the sector.
March witnessed one of the most substantial increases in overall sales and business activity in approximately 14 years. This was particularly boosted by a record-breaking surge in new export orders, as noted by the survey. The increase in export demand was most noticeable in regions such as Africa, Asia, Australia, Europe, the Americas, and the Middle East.
Speaking of prices, there was a significant rise in input price inflation due to increased labor and material expenses. Consequently, the rate of selling price inflation rose to its highest level since July 2017.
Accompanying the surge in new business, companies increased their workforce numbers in March. The rate of job creation matched the fastest rise in employment since November 2022.
Finally, the composite output index, another critical economic indicator, rose to 61.8 in March from 60.6, signaling the second most potent surge in India's private sector in over thirteen and a half years.
