Boost in domestic, international demand drives growth in services Purchasing Managers' Index (PMI) in February
- IBEF
- March 6, 2025
India’s services sector expanded significantly in February 2025, driven by strong domestic and international demand, according to the HSBC India Services Purchasing Managers' Index (PMI) compiled by S&P Global. The Services PMI rose to 59 in February from 56.5 in January, maintaining its 43-month streak above the neutral 50-mark, which indicates continued expansion. New orders increased at a faster pace, boosting output and employment. The sector also benefited from higher external sales, with international demand from Africa, Asia, Europe, the United States, and the Middle East growing fastest in six months.
Despite rising cost burdens, inflation slowed to a four-month low, keeping output prices stable. To meet increased demand, Indian service firms continued hiring at one of the fastest rates recorded since December 2005, with both full-time and part-time staff additions. Productivity gains, strong demand, and improved business sentiment fueled optimism, though business confidence slightly declined compared to August 2024. Chief India Economist at HSBC, Ms. Pranjul Bhandari, emphasized that global demand played a major role in India's services sector growth, reinforcing its importance in economic expansion.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Partners
