Moderation in India's Services Sector Growth in February

• 06 Mar 2024

On 5th March, insights from the HSBC survey indicated a moderation in India's services sector growth in February.

Key Points

• New Business from Abroad: It continues to rise for the thirteenth consecutive month, with gains reported from various regions including Australia, Asia, Europe, Americas, and UAE.
• Business Confidence: Year-ahead outlook for activity weakened, although around 26% of companies anticipate growth, while only 2% anticipate a fall.
• Price Trends: Prices charged for services increased at the slowest rate in 24 months, while input prices inflation moderated.
• Employment: Companies created jobs due to rising workloads, but employment growth dampened due to easing capacity pressures and lower confidence towards the outlook.
• Private Sector Sales Growth: It remained strong despite softening since January, with similar rates of expansion observed in manufacturing and services firms.