India Services PMI at 58.8, 5-Month High

India's services sector expanded at its fastest pace in five months in April, with the HSBC India Services Purchasing Managers' Index rising to 58.8 from 57.5 in March, a monthly survey showed Wednesday.

The index, compiled by S&P Global from responses by around 400 service sector companies, has remained above the 50 threshold signaling growth since mid-2021. New orders and output increased at their quickest rates since November, driven by robust domestic demand. Survey respondents cited competitive pricing, e-commerce growth and strong customer needs for relocation and logistics services as key factors. Consumer services led the expansion, followed by transport, information and communications.

"Activity and new orders strengthened, even as new export orders eased, suggesting that demand is rotating from overseas markets to domestic consumers amid the Middle East conflict," said Pranjul Bhandari, chief India economist at HSBC.

International demand weakened to its second-lowest pace in more than a year, with companies pointing to the Middle East war and reduced inbound tourism. The seasonally adjusted New Export Business Index fell by more than five points.