February services PMI shows uptick, overall inflation rate softens

Upbeat demand conditions in the domestic demand fed through to the labour market, with services sector jobs expanding at the same solid rate that was registered at the start of 2019

The services sector, which is the dominating area of India’s economy, gathered moderate pace in February due to new work orders, showed the Nikkei purchasing managers’ index (PMI). This resulted in job creation gaining momentum. 

PMI for services rose from 52.2 in January to 52.5 in February, showing acceleration in the growth rate. A print above 50 means expansion, while a score below that denotes contraction.

Despite rising cost burden, the overall inflation rate softened. 

New business received by services companies rose to a great extent in February amid strengthening underlying demand, the PMI survey said, adding the upturn in