Maintaining expansion mode for the second straight month, activity in India’s services sector grew at the fastest pace in month of April, on the back of greater inflows of new work. Easing inflationary pressures along with favourable demand conditions also helped bolster business activity. However, outstanding business continued to increase at service providers during reported month.
According to the survey report, the seasonally adjusted Nikkei Services Business Activity Index remained above the neutral mark of 50.0 in April, posting reading at 51.4, up from 50.3 in March. The Nikkei India Composite PMI Output Index which measures both manufacturing and services too climbed to 51.9 in April from 50.8 in March.
Besides, the report highlighted that job creation in the services sector accelerated to the sharpest since March 2011, reflecting an uptick in demand and the manufacturing sector also reported a renewed rise in staffing levels but at marginal pace. The report further showed that order book volumes across India’s service sector were marginally higher but saw expansion by accelerating from the preceding month due to strong demand. New orders placed at Indian manufacturers also rose for the sixth successive month during the month of April.
On the price front, input cost inflation in the both services and manufacturing sector softened, coming below their respective historical averages. Besides, output charge inflation too eased, though the firms attempt to pass on their higher cost burdens to the consumers.