India’s Services PMI rises to 53.6

Composite Purchasing Managers' Index (PMI) for March also increased to a three-month high of 54.3

April 7, 2022

Relaxation of Covid-19 restrictions has increased consumer spending as service providers recorded the fastest upturn in new business thus far

While the rise in PMI in March was driven by the domestic market, new business from abroad declined at the fastest rate since September 2021

Inflation in March reached an 11-year high as the prices of chemicals, fuel, raw materials, retail, transportation, and vegetables increased

New export orders fell in March after eight consecutive months of increase but the employment situation in the manufacturing sector was not hampered

India’s PMI for services for March increased to 53.6 from 51.8 in the preceding month – the highest since December, after a substantial slowdown at the beginning of the year as per S&P Global India, an independent rating agency.

Relaxation of Covid-19 restrictions resulted in an increase in consumer spending, as service providers recorded the fastest upturn in new business in 2022. While the rise in PMI in March was driven by the domestic market, new business from abroad declined at the fastest rate since September 2021.

However, inflation in March was the highest in 11 years as the prices of chemicals, fuel, raw materials, retail, transportation, and vegetables increased. Jobs in the service sector also fell despite an increase in PMI but this decrease has been deemed as marginal. The composite PMI for March also increased to a three-month high of 54.3. However, the manufacturing PMI declined to 54.0 in March from 54.9 in February 2022 due to a smaller increase in new orders and production. New export orders also reduced in March after eight consecutive months of increase but the employment situation in the manufacturing sector was not hampered.