India’s February Services PMI: Growth Eases to 60.6

In February, India’s service sector sustained its growth trajectory, supported by positive demand trends. However, there was a slight moderation in growth compared to January, with the Purchasing Managers’ Index (PMI) dropping to 60.6 from 61.8. Despite this decline, the sector remained well above the neutral mark of 50.0, indicating a sharp rate of expansion.

1. Headline PMI Figure

  • The Purchasing Managers’ Index (PMI) for India’s services sector dropped to 60.6 in February from January’s six-month high of 61.8.
  • Despite the decline, the index remained comfortably above the neutral mark of 50.0, indicating a sharp rate of expansion well above historical averages.

2. Business Activity

  • Business activity expanded across all sectors, with Finance & Insurance leading the growth while Real Estate & Business Services showed the slowest rise.

3. Employment Growth

  • Companies created jobs driven by rising workloads, although employment growth was dampened by easing capacity pressures and lower confidence towards the outlook.

4. New Orders and Output

  • Growth in new orders and output slowed in the services sector, contributing to the overall decline in the headline PMI figure.
  • Despite the slowdown, both metrics remained above the long-run average, indicating sustained demand.

5. International Sales

  • New business from abroad continued to rise for the thirteenth consecutive month, with gains reported from various regions including Australia, Asia, Europe, the Americas, and the UAE.
  • International sales expanded at a solid rate, marking one of the best performances in the series history.

6. Composite PMI Output Index

  • The HSBC India Composite PMI Output Index, which includes both manufacturing and services, slipped from 61.2 in January to 60.6 in February.
  • Private sector output continued to expand at a sharp rate, with growth in sales remaining strong despite some softening since January.

 

 

 

Piyush Shukla

Recent Posts

Celebrating Good Governance Day- Honouring Atal Bihari Vajpayee’s Legacy

Good Governance Day, also known as Sushashan Diwas, is observed annually on December 25 in…

6 hours ago

President Appoints New Governors For Five States

In a significant move aimed at reorganizing governance and addressing political and administrative challenges, President…

9 hours ago

December 25th Current Affairs Challenge

Exams such as SSC, Banking, Railways, and state-level tests offer paths to prestigious positions in…

16 hours ago

What is the Old Name of Mysore?

Mysore, a city in the southern state of Karnataka, India, is famous for its rich…

1 day ago

India Squad For Champions Trophy 2025

The upcoming Champions Trophy 2025 marks the ninth edition of the ICC Champions Trophy, featuring…

1 day ago

ICC Champions Trophy Schedule 2025 Announced- India vs Pakistan

The 2025 ICC Champions Trophy is set to mark the ninth edition of this prestigious…

1 day ago