5.3.19

February 2019: Services PMI gains momentum

India's services sector activity gathered momentum in February, driven by a quicker expansion in new work orders that supported a faster increase in output and job creation.

The seasonally adjusted Nikkei India Services Business Activity Index rose from 52.2 in January to 52.5 in February, indicating an upturn in output.

The services PMI was in the expansion territory for the ninth straight month. In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.

New business received by services companies rose to a greater extent in February amid strengthening underlying demand, the survey said adding that the upturn in new orders in the services sector was domestically driven, as highlighted by a renewed contraction in external sales.

Meanwhile, the seasonally adjusted Nikkei India Composite PMI Output Index, that maps both the manufacturing and services industry, rose from 53.6 in January to 53.8, indicating acceleration in private sector activity in the country.

When looking at other emerging markets, PMI data showed that the Indian goods producing industry outperformed those in Brazil, Russia and China by a considerable margin.

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