Services PMI falls to 17-month low in March

Last Updated: Wed, Apr 03, 2013 08:49 hrs

In March, Services PMI fell to a 17-month low of 51.4, according to the HSBC India Composite Output Index.

In February, the widely tracked HSBC composite output index had registered 54.8. This is much lower than the long-run series average of 57.2.

After an expansionary growth in February, HSBC India Services PMI fell to 51.4 in March 2013.

In February, the HSBC Services Business Activity Index had registered 54.2, up from its reading of 53.2 in January 2013.

Though the monthly services output has grown in March, the growth has eased to its lowest level after October 2011.

And while there was a rise in the new work intakes in the Indian services sector for the seventeenth successive month in March 2013, manufacturing firms experienced a slower expansionary rate in new work intakes.

The outstanding business levels across the Indian private sector rose in March. Persistent power cuts led to unfinished business volumes. The services providers, however, expressed greater optimism about the current fiscal year.

“Growth in service sector activity slowed notably due to a deceleration in new business flows. Moreover, backlogs of work and hiring rose at a slower pace. Even so, businesses remained confident about the future, said Leif Eskesen, Chief Economist for India & ASEAN at HSBC.

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