Services sector picks up in Apr on new businesses

India's services sector rebounded in April after a March slowdown, driven by increases in new business and output, a private survey showed on Tuesday.

- Rhik Kundu

NEW DELHI:

The seasonally adjusted HSBC India Services Purchasing Managers' Index (PMI) rose to 58.7 in April from 58.5 in March, staying well above the 50-mark that signals expansion, though still below February's 59.

The index stood at 56.5 in January, 59.3 in December, 58.4 in November, 58.5 in October, and 57.7 in September.

Business activity in India's services sector picked up slightly in April after a March slowdown, driven by a faster rise in new orders and a corresponding uptick in employment, the survey said.

Capacity pressures grew with a solid rise in unfinished work, while average charges increased at a faster pace despite cost pressures easing to a six-month low, it added.