India’s Services PMI Eases Slightly to 58.1 in February

India’s services sector continued to expand at a healthy pace in February, according to the HSBC/S&P Global Purchasing Managers’ Index (PMI). The final Services PMI stood at 58.1, marginally lower than the flash estimate of 58.4, but still indicating strong growth momentum.

The report highlighted that new business inflows remained solid, supporting job creation and improved business confidence. Input costs rose at a faster pace, though output charge inflation moderated, suggesting competitive pricing strategies by service providers. Analysts note that the services sector’s resilience is crucial for India’s overall economic outlook, especially as manufacturing activity also showed strength during the same period.

Key Highlights

• Final Reading: Services PMI at 58.1 in February (vs flash 58.4).
• Growth Signal: Well above 50, indicating robust expansion.
• Drivers: Strong new business inflows and resilient demand.
• Employment: Continued job creation in services sector.
• Cost Trends: Input costs rose, but output charge inflation eased.

Sources: HSBC/S&P Global PMI Release, Business Standard, Financial Express