India’s service sector continues to grow during Feb, PMI eases to 60.6
India's service sector continued to grow during February as positive demand trends supported sales and business activity, according to a recent survey.
India’s manufacturing sector activity weakened sharply with factory output slipping to a seven-month low in March to 55.4.
PMI was 57.5 per cent in February and now the situation is set to turn more challenging in April.
Loss of growth momentum due to a surge in Covid-19 cases as well as high input cost pressure decelerated pace of new orders and production for India’s manufacturing sector
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Accordingly, IHS Markit India Manufacturing PMI report said that firms scaled up production and input buying in line with another upturn in sales, but employment decreased due to the pandemic curbs and a lack of pressure on capacity.
On the price front, the rate of input cost inflation was among the strongest seen over the past three years cited the report. However, selling prices increased only moderately as companies limited their adjustments to retain a competitive edge and boost sales.
The PMI ranges between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month.
“However, the latest reading was indicative of a substantial improvement in the health of the sector that outpaced the long-run series average.”
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