The growth of service sector in India is in its full speed. According to the S&P Globe India Services PMI Business Activity Index, service activity reached a 12-year high in February due to easing input cost pressure.
Services PMI Activity 59.4 in February
According to the monthly survey, the services PMI business activity has increased to 59.4 in February, which was 57.2 in January last month. When this figure remains above 50, it is believed that business activity is expanding, that is, growth is taking place, when it remains below 50, it is believed that activity is shrinking.
India’s services activity is witnessing a boom for 19 consecutive months. The composite PMI has increased from 57.5 in January to 59.0 in February due to increase in activities related to services.
Expectation of further increase in expenses
Although Indian service providers have indicated that their expenses will increase further in the last quarter, the rate of input price inflation is at a 29-month low. Companies usually look at the high cost of food, materials, transportation and salaries. According to the survey – only 4% of the services companies pass on the increase in cost to their customers. While a large part keeps its selling price as it is.
Growth in employment for 9 consecutive months
An increase in employment has also been registered in February, which extended this expansion for 9 consecutive months. However, the rate of creation of new jobs was very low. Because most reported no change in staff numbers in January.
