Business activity in the services sector expanded for the third consecutive month in April bolstered by growth in new orders, according to a private sector survey. The Nikkei India Services Purchasing Managers’ Index registered a reading of 50.2 in April, down from 51.5 in March.
A reading above 50 implies an expansion while a number below 50 denotes a contraction.
“Indian service sector activity continued to expand during April, supported by ongoing growth of new work, and companies hired additional staff over the month,” the Nikkei report said. “However, in all three cases, the rates of increase weakened.” The new orders, the report said, came mainly from advertising campaigns. However, competitive pressures could have stymied growth in this area, it added. “The rate of expansion in new business was only marginal overall, having softened from that registered in March,” the report said.
“April PMI data for the Indian service sector show how jittery the current economic environment is, igniting concerns among some businesses, despite remaining in growth territory,” Pollyanna De Lima, economist at IHS Markit, and author of the report, said. “Slower and only marginal increases in new work and activity were seen, with these indicators close to the stagnation mark.”
