The Indian service sector remained resilient to the escalation of the Covid-19 crisis, with a further solid increase in new work supporting output expansion.
Still, panel member reports suggested that the rise in business activity was constrained by the pandemic and sentiment towards growth prospects faded.
Meanwhile, service providers noted the steepest rise in overall expenses since December 2011. Charges increased only slightly, however, as firms sought to boost sales.
Falling from 54.6 in March to 54.0 in April, the seasonally adjusted India Services Business Activity Index pointed to the slowest increase in output for three months. That said, the latest reading was indicative of a solid rate of expansion that outpaced the long-run survey average.
Although private sector activity in India continued to expand markedly in April, growth eased to the weakest in 2021 so far. The Composite PMI Output Index fell from 56.0 in March to 55.4 due to slower increases at goods producers and service providers. The upturn was generally curtailed by the escalation of the Covid-19 crisis.
Source: IHS Markit release.