Covid-19 slows India's services activity slightly in March: PMI report

Firms continued to bear elevated cost pressures but only passed some of it to consumers to stay competitive

Activity in India's dominant services industry expanded for the sixth consecutive month in March, supported by strong domestic demand, but some momentum was lost as authorities imposed fresh restrictions following a surge in coronavirus cases, a survey showed.

The results were broadly backed by a Reuters poll last week that predicted India's economy would grow faster than previously expected this fiscal year but warned a resurgence of coronavirus cases could derail growth.

The Nikkei/IHS Markit Services Purchasing Managers' Index fell to 54.6 in March from 55.3 in February but held above the 50-mark separating growth from contraction.

"While the March results showed that