Services PMI: The growth rate of India’s service sector was dull due to a slow increase in sales and production. In January, the PMI of the service sector decreased to a two -year low. This information was given in the monthly survey released on Wednesday. Asia’s third largest economy is struggling with sluggish consumption. To promote the expenditure, the government gave some relief in tax to the middle class in the general budget presented on February 1, but saved from announcing major reforms. This is very important to support growth.
Service sector reduced the speed of lost growth in January, PMI reduced to 56.5
Seasonally adjusted HSBC India Service Business Activity Index (HSBC Final India Services Purchasing Managers’ Index reduced from 59.3 of December to 56.5 in January, which is the lowest level since November. In the language of the purchasing manager index (PMI), more than 50 marks mean expansion in activities and less than 50 refers to contraction.
Pranjul Bhandari, the chief economist of HSBC India, said, “India’s service sector lost the speed of growth in January, although PMI was quite above the level of 50. Business activity and new business PMI index came to their lowest level since November 2022 and November 2023 respectively.
Rapid growth in international sales, hiring increased
Unlike the trend of total new orders, international sales increased rapidly. Those involved in the survey mentioned the benefits from customers from Asia, Europe, West Asia and America. The total rate of expansion reached a five -month high.
Bhandari said, “… The new export business was partially declining, although continued to overcome the decline in the end of 2024 …” The survey said that continuous improvement and rising capacity pressure in new businesses due to continuous improvement and increasing pressure Initial to recruit additional employees at the beginning of the quarter. Appointments were made to full -time and part -time positions. The rate of employment generation increased from December and it rose fastest since the data collection started in December 2005.
Service companies increased due to inflation
On the price front, the service companies saw another bounce in their expenses, the main reason for the increasing cost of the employees as well as rising prices of food items. As a result of the rising cost burden and flexibility of demand, the prices for the provision of Indian services increased even further.
Meanwhile, India’s private sector growth rate slowed down in January. HSBC India Composite output index fell from 59.2 of December to 14 months low to 57.7. The overall PMI index is a weighted average of comparable manufacturing and service PMI indices. HSBC India Seva PMI has been prepared by S&P Global based on the answers to the questions sent to the group of about 400 service sector companies.