MUMBAI: The key services sector index has fallen to 60.8 in April considerably, down from a14-year high in March at 61.2, yet remaining strong driven by the second-best ever exports, according to an industry report.
As per the services PMI by HSBC Bank, data compiled by S&P Global, on Monday, the sector has made a strong start to the first quarter of the new fiscal with key index remaining at near 14-year high though marginally down from the last month. Report attributed the strong data to the buoyant domestic demand, apart from new business gains that companies made from several parts of the world, which collectively underpinned the second-quickest upturn in global sales since series started in September 2014.
The strong numbers, noted the report, are in spite of rising wages and higher food prices which have led to another increase in cost burdens. “Despite falling from the high 61.2 in March to 60.8 in April, the seasonally adjusted HSBC Services Business Activity Index highlights one of the strongest growth rates seen in just under 14 years. Survey members attributed the latest upturn in output to favourable economic conditions, demand strength and rising intakes of new work” HSBC said. Business activity increased across the four sub-categories monitored by the survey, led by steep growth in finance & insurance.