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( 06 May 2022)
Services sector activities touch 5-month high in Apr amid mounting price pressures

Services sector activities improved further and touched a five-month high in April driven by a surge in incoming new work orders that boosted business activity and supported a renewed increase in employment, according to a survey.

The seasonally adjusted S&P Global India Services PMI Business Activity Index jumped to 57.9 in April, from 53.6 in March, highlighting a sharp rate of expansion that was the fastest since last November amid mounting price pressures.

For the ninth straight month, the services sector witnessed an expansion in output. In Purchasing Managers’ Index (PMI) parlance, a print above 50 means expansion while a score below 50 denotes contraction.

“In isolation, the PMI data for the services sector were mostly encouraging, as surging demand underpinned quicker increases in new business inflows and output,” said Pollyanna De Lima, Economics Associate Director at S&P Global.

The Indian services sector growth continued to gain momentum amid a near-record upturn in input costs. Selling prices rose at the fastest rate since July 2017 and inflation concerns continued to dampen business confidence, the survey noted.