India's services PMI rises at softest pace in 14 months in March

Output across India's service economy rose at the softest pace in 14 months during March, mirroring the slowdown in growth of new business intakes but comparing with a near record expansion in international orders, HSBC India Services PMI data showed. At the same time, selling charge inflation quickened to a seven-month high amid the steepest increase in input costs since June 2022. Elsewhere, business confidence strengthened as did job creation. Falling from 58.1 in February to 57.5 in March, the seasonally adjusted HSBC India Services PMI Business Activity Index ' based on a single question asking how the level of business activity compares with the situation the month before ' indicated the weakest rate of expansion for 14 months. That said, the headline figure remained above its long-run average of 54.4. While new business gains continued to underpin growth, according to panellists, output was constrained by the detrimental impact of the Middle East war on demand, market conditions and tourism.