India's services sector continued to see firm growth in another month, driven by strong domestic and international demand, leaving business confidence high, according to the results of the latest HSBC survey.
The HSBC final India Services Purchasing Managers' Index, conducted by S&P Global, was 60.8 in April, a little below the previous month's 61.2, but a much faster growth compared to nearly 14 years ago.
The services sector has continued to show growth for eight consecutive months, and a PMI reading still above the pivotal 50 mark separates expansion from contraction.
Market conditions also continued to remain favorable, taking new business sub-index to a three-month peak. It was the third-highest level in nearly 14 years, according to the survey.
World demand for Indian services remained robust, but it was a notch below the unexpected heights scaled in March.
Pranjul Bhandari, HSBC's chief India economist, said, "India's service activity rose at a marginally softer pace in April, thanks to an uptick in new orders, especially from the domestic market. New export orders remained strong, but a slight moderation was seen from March."
Last Thursday's manufacturing activity PMI update showed that industrial activity was also growing, though at a slightly more muted pace.
The sum of manufacturing and services activity PMI came in at 61.5 in April, only a notch below the eight-month high of 61.8 in March.
Bhandari also wrote, "Overall activity across both manufacturing and service sectors saw a remarkable pick-up in April, albeit at a slightly softer pace, indicative of continued buoyancy in these sectors."
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