PMI Remains Resilient

IHS Markit India April services PMI 54.0 in April vs 54.6 in prior month.

• Commenting on the latest survey results, Pollyanna De Lima, Economics Associate Director at IHS Markit, said: "The PMI results for April showed a more resilient economic performance for the service sector than expected given the escalation of the COVID-19 crisis in India. The rate of sales growth was surprisingly unchanged from March."
• "A slightly different picture was seen for business activity. Although service providers signalled a strong expansion, the rate of growth eased to a three-month low. Firms foresee higher output volumes over the course of the coming year, but business sentiment was dampened by worries surrounding the pandemic. "One area of concern was inflation. Services firms noted the steepest rise in overall expenses in over nine years as global shortages of inputs and higher transportation costs continued to exert upward pressure on outlays. Companies absorbed most of the additional cost burden themselves, as indicated by only a slight increase in selling prices. The gap between rates of inflation for input prices and charges was one of the widest since the global financial crisis."
• Fig.1: India Composite/Services/Manufacturing PMI

Source: IHS Markit