Services PMI March: In March 2023, there has been a huge decline in the Services PMI as compared to February. In March it reached a 12-year high.
India Services PMI: In March, there has been a decline in the activities of the country’s service sector. The Services PMI was at 59.4 in February, which has come down to 57.8 in March. There was a slowdown in the activities of the country’s major service sector industries during March. Services PMI reached a 12-year record high of 59.4 in February due to expansion in services sector demand.
This level of Services PMI in February is the lowest level since September 2020. However, it is still above the 50 mark which indicates that there is growth and not contraction.
Pauliana de Lima, Associate Director of Economics at S&P Global Market Intelligence, told that India’s service sector saw a boom in February, which was due to new business and output. The pressure of input costs on the economy of the service sector in the country remained low, a similar trend was seen in the manufacturing sector as well. This is the reason that the real inflation rate of cost price was seen at the low level of two and a half years.
Manufacturing PMI figures released this week show that manufacturing activities expanded at a rapid pace during the quarter ended March. However, a slowdown in the services sector led to a decline in the composite index from 59 per cent in February to 58.4 in March.
According to a survey by S&P Global Market Intelligence, despite 10 consecutive months of growth, employment in the services sector showed a modest increase in employment during March.
98 percent of the respondents who took part in the survey said that according to the current needs, the number of employees is sufficient and only a slight increase in new jobs has been registered. However, service providers say that there is full hope of expansion in the service sector in the coming year.
