• UGI USER
  • May 07, 2024
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APRIL SERVICES PMI SUGGESTS EXPANSION SLOWDOWN, DRIVEN BY STRONG ORDERS

Why in the news?

April’s services PMI eased to 60.8 from 61.2 in March, indicating a slight slowdown in expansion, driven by strong new orders.

Overview of April’s Services Sector Performance:

  • The HSBC India Services Business Activity Index dipped slightly from 61.2 in March to 60.8 in April, indicating a moderation in the pace of expansion.
  • Despite this, firms reported strong new order inflows, with the second-highest surge in export deals in a decade.
  • Robust growth in new business orders and output persisted, marking some of the fastest rates in 14 years.
  • Positive factors driving this growth included favourable economic conditions, demand strength, and increased intake of new work.
source:mint
About Purchasing Managers’ Index (PMI) :

  • Purchasing Managers’ Index (PMI) gauges business activity in manufacturing and services sectors.
  • It’s calculated separately for each sector and a composite index is also formed.
  • PMI indicates expansion (above 50), contraction (below 50), or stability (at 50).
  • Provides insights on current and future business conditions.
  • Scale: 0 to 100.
  • Released monthly, it’s a leading indicator of economic activity.

Note:https://universalinstitutions.com/marchs-pmi-survey-indicates-strongest-service-activity-growth-since-2010/