India Services Growth Rebounds In February

(RTTNews) - India's service activity expanded at an accelerated pace in February, boosted by improving domestic and foreign demand, final data from S&P Global showed on Wednesday.

The HSBC final services Purchasing Managers' Index climbed to 59.0 in February from January's 26-month low of 56.5. A reading above 50 indicates expansion in the sector. The flash score was 61.1.

Output growth was driven by productivity gains, favorable underlying demand, and greater intakes of new business.

New business increased further in February, which was more evident in international orders, which grew at the fastest pace in six months amid better demand from clients in Africa, Asia, Europe, the Americas, and the Middle East.

Service providers continued to add workforce numbers in February in line with rising new orders and to alleviate capacity pressures. Moreover, employment expanded sharply and at one of the fastest rates seen since data collection began in December 2005.

On the price front, input price inflation eased to a 4-month low, while charge inflation remained above its long-run average.

Looking ahead, Indian service companies remained upbeat about output expectations in the year ahead on the back of advertising, better customer relations, efficiency gains, and healthy demand conditions. 

The composite output index climbed to 58.8 in February from 57.7 in the previous month, indicating a sharper upturn in the Indian private sector output. The acceleration in growth was centered in the service economy, as manufacturers registered a slower upturn.