Positive gains in new work across the manufacturing and service sectors suggest that private-sector output will likely increase markedly again in March.
The services activity in the month of February rose for the fifth consecutive month, shooting up to 57.5 from 55.5 in the previous month. A significant improvement has been seen in new work, export orders, and business confidence. The services PMI was on a 19-month low in September 2019, after which it is on a continuous surge. The latest figure highlighted the quickest expansion in services output since January 2013. The companies that reported higher business activity reported strengthening demand, supportive economic conditions, and accommodative public policies. The pace of expansion in international demand for Indian services was moderate, but above its long-run average.
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Even as the PMI surged substantially in the month of February, on a less upbeat tone, job creation stood at a three-month low in February, with softer increases noted in both the manufacturing and service sectors. However, strong growth is seen among goods producers and service providers, with the sharper rate of expansion among the former. The manufacturing PMI in the month of February stood at 54.5, falling from a nearly eight-year high of 55.3 in the previous month.
Source: Financial Express
