Service sector

India’s services sector: India’s services activity at 3-month high as Covid restrictions ease

Activity in India’s services sector hit a three-month high in March, helped by the easing of Covid-related restrictions, even as business confidence remained subdued on inflation fears that have been reaccelerated by the Russian-Ukrainian conflict, a private investigation revealed on Wednesday. .

The S&P Global Purchasing Managers’ Index (PMI) for services rose from 51.8 in February to 53.6 in March, with companies recording the fastest growth in sales and business activity so far during the calendar year 2022. A reading above 50 in the index shows expansion and below that contraction.

However, the overall figure posted its lowest average (52.3) in the March quarter since the first quarter of fiscal 2022, also dropping notably from the October-December quarter when it was 57, 4.

“Input costs rose at the fastest rate in 11 years at the end of fiscal 2021-22, but companies mostly absorbed the burden of additional costs and only moderately increased end prices,” said S&P Global said in the report, and warned that in the future, consumers could face higher service charges as cost pressures increase.

Agencies

Survey participants mentioned higher prices for chemicals, fuel, raw materials, retail, transportation and vegetables.

“The war in Ukraine has exacerbated supply chain issues, triggering a reacceleration of inflation in India’s services economy,” said Pollyanna De Lima, associate director of economics at S&P Global, adding that the consumers are expected to face soaring prices in the coming months. cost charges flow through to service charges.

Among the subsectors, finance and insurance emerged as the best performing category in March, showing the best trends for sales and production.