Services sector sees sharp uptick in Feb

India's services sector activity witnessed a sharp growth, as measured by the services Purchasing Managers' Index (PMI), in February led by an expansion in output, recovering significantly after falling to a 26-month low in January, a release from S&P Global said on Wednesday.

- Auhona Mukherjee

NEW DELHI:

The seasonally adjusted HSBC India Services Business Activity Index came in at 59 up from 56.5 in January, indicating a sharp rate of expansion. The PMI services reading, however, was lower than the services flash PMI of 61.1 released last month.

To be sure, the reading remained above its long-run average and was also above the 50-mark, which indicates expansion over the previous month. The index has remained above 50 for over three years now.

The index is compiled using responses to questionnaires sent to a panel of around 400 service sector companies. The sectors covered include consumer (excluding retail), transport, information, communication, finance, insurance, real estate and business services.