March services sector PMI rises due to strong export orders

Mumbai: The Purchasing Managers Index (PMI) of the services sector rose in March due to growth in services sector exports. The PMI for March has increased to 61.20 as compared to 60.60 in February. According to a survey report, an increase in PMI has been seen due to good demand and increase in orders.

The situation for the sector was positive in March as a result of strong demand from the services sector. In the last 14 years, March of the current year has seen another strong growth in business activity in the services sector.

The services sector was supported as new export orders remained high. The PMI of the services sector has remained above 50 continuously since July 2021. An index above 50 is called expansion of that area.

India’s services industry has seen a surge in orders from Africa, Australia, Europe and the US. As a result of new orders, hiring by service providers was the highest since August 2023, according to S&P Global’s HSBC India report.

Apart from export demand, domestic demand for services also remained strong, indicating accommodative economic policy. The overall outlook for the current year also looks optimistic.

The combined services and manufacturing PMI stood at an eight-month high of 61.80. As the cost of raw materials increased, the cost of services also increased.