Improved demand conditions push services output higher: PMI

Mumbai, May 4 (IANS) Improved demand conditions along with easing of inflationary pressures pushed the output of the Indian service sector higher during April, a key macro-economic data showed on Friday.

According to the seasonally adjusted Nikkei India Services PMI Business Activity Index, the rise in service sector's output was supported by new order growth, improvements in demand conditions and job creation "accelerated to the sharpest since March 2011".

Subsequently, the seasonally adjusted index registered an overall increase from 50.3 in March to 51.4 in April.

An index reading of above 50 indicates an overall increase in economic activity and below 50 an overall decrease.

The impact of higher services PMI accelerated the overall private sector's output during April.

Consequently, the seasonally adjusted Nikkei India Composite PMI Output Index rose from 50.8 in March to a three-month high of 51.9 in April.

Commenting on the Indian Services PMI survey data, Aashna Dodhia, Economist at IHS Markit, and author of the report, said: "It was encouraging to see the Indian service economy report a positive start in the April quarter, with output growth gaining momentum as demand conditions improve. 

"Subsequently, the best round of job creation since March 2011 was registered within the sector."

"India's overall economy also saw price pressures moderating further, with input and output charge inflation registering at the slowest since September 2017 and June 2017, respectively," Dodhia said.