India’s service sector activity improved further in the month of April, with a surge in incoming new work boosting business activity and supporting a renewed increase in employment. As per the survey report, the seasonally adjusted S&P Global India Services PMI Business Activity Index surged to 57.9 in April from 53.6 in March. Further, the S&P Global India Composite PMI Output Index -- which measures both manufacturing and services -- also improved to 57.6 in April from 54.3 in March.
The report noted that new business inflows expanded further in April, taking the current sequence of growth to nine months. The latest rise in sales was sharp and the strongest since November 2021. Output was boosted by higher bookings, the easing of pandemic-related restrictions and favourable demand conditions. Yet, companies resumed their hiring efforts in April, as seen by the first increase in employment since last November.
On the inflation front, there was an intensification of inflationary pressures, with a near-record upturn in input costs underpinning the strongest rise in output charges in just under five years. Inflation concerns continued to dampen business confidence. Owing to a combination of recovering demand and sharp cost pressures, Indian service providers lifted their selling prices again at the start of fiscal year 2022/23. The rate of charge inflation was marked and the highest in close to five years.
