<p>New Delhi: India’s services sector growth declined marginally in March due to sluggish international orders, and business sentiments slipped to a seven-month low amid turmoil in the global economy caused by aggressive tariff policies of the United States, an industry survey report released by S&P Global showed on Friday.</p><p>India’s Purchasing Managers’ Index (PMI) for services fell to 58.5 in March from 59 recorded in the previous month.</p><p>Despite the decline, PMI data shows healthy expansion in the services sector, which accounts for more than half of India’s gross domestic product (GDP). The PMI print above 50 indicates growth in the sector while below 50 shows contraction. The March data was substantially above its long-term average of 54.2.</p><p>“Domestic and international demand remained fairly buoyant, despite being sequentially a tick lower than the month before,” said Pranjul Bhandari, Chief India Economist at HSBC.</p>.PM Modi offers linking UPI with payment systems of BIMSTEC nations.<p>Growth in international orders of Indian services slipped to the lowest level in 15 months. Similar trend was recorded in the manufacturing sector also. As per the manufacturing PMI data released earlier this week, international sales growth declined to three-month low in March. Despite the sluggish international sales, manufacturing PMI rose to eight-month high in March driven by robust domestic demands.</p><p>Fierce competition and fading cost pressures suppressed charge inflation in March. Services output prices in March increased at the slowest pace in three-and-a-half years. Only 1 per cent of survey participants reported higher average fees than in February, with the remaining companies signalling no change.</p><p>Heightened competition not only restricted price pressures, but it was also identified by the survey participants as the main challenge to output prospects. The PMI report is based on a survey conducted among around 400 service sector companies in the country.</p><p>The survey data indicate a concerning trend for the economy in the coming months. Business sentiment slipped to a seven-month low and was below its long-run average. Consumer services firms were the most upbeat in March followed by finance & insurance, real estate & business services and transport, and information & communication.</p><p>“Looking ahead, business sentiment remains generally positive, but intensifying competition presents a significant challenge to many survey participants,” said Bhandari.</p><p>Low business confidence negatively impacted hiring. Employment growth slipped to the weakest level in a year. Several companies, which participated in the survey, suggested that they had sufficient capacity for current requirements.</p>
<p>New Delhi: India’s services sector growth declined marginally in March due to sluggish international orders, and business sentiments slipped to a seven-month low amid turmoil in the global economy caused by aggressive tariff policies of the United States, an industry survey report released by S&P Global showed on Friday.</p><p>India’s Purchasing Managers’ Index (PMI) for services fell to 58.5 in March from 59 recorded in the previous month.</p><p>Despite the decline, PMI data shows healthy expansion in the services sector, which accounts for more than half of India’s gross domestic product (GDP). The PMI print above 50 indicates growth in the sector while below 50 shows contraction. The March data was substantially above its long-term average of 54.2.</p><p>“Domestic and international demand remained fairly buoyant, despite being sequentially a tick lower than the month before,” said Pranjul Bhandari, Chief India Economist at HSBC.</p>.PM Modi offers linking UPI with payment systems of BIMSTEC nations.<p>Growth in international orders of Indian services slipped to the lowest level in 15 months. Similar trend was recorded in the manufacturing sector also. As per the manufacturing PMI data released earlier this week, international sales growth declined to three-month low in March. Despite the sluggish international sales, manufacturing PMI rose to eight-month high in March driven by robust domestic demands.</p><p>Fierce competition and fading cost pressures suppressed charge inflation in March. Services output prices in March increased at the slowest pace in three-and-a-half years. Only 1 per cent of survey participants reported higher average fees than in February, with the remaining companies signalling no change.</p><p>Heightened competition not only restricted price pressures, but it was also identified by the survey participants as the main challenge to output prospects. The PMI report is based on a survey conducted among around 400 service sector companies in the country.</p><p>The survey data indicate a concerning trend for the economy in the coming months. Business sentiment slipped to a seven-month low and was below its long-run average. Consumer services firms were the most upbeat in March followed by finance & insurance, real estate & business services and transport, and information & communication.</p><p>“Looking ahead, business sentiment remains generally positive, but intensifying competition presents a significant challenge to many survey participants,” said Bhandari.</p><p>Low business confidence negatively impacted hiring. Employment growth slipped to the weakest level in a year. Several companies, which participated in the survey, suggested that they had sufficient capacity for current requirements.</p>