There is a huge improvement in the service sector. The PMI for the services sector, one of the most affected sectors, has risen to over 53 in the last one month. This is the best performance of the year 2022 so far. But the pace of inflation can put a brake on this.
The S&P Global India Services Purchasing Index rose to 53.6 in March, from 51.8 in February. For the eighth consecutive month, the service PMI has remained above 50, ie growth. Now that growth has accelerated, but last month’s increase in production costs over the past 11 years will be a challenge.
Consumer readiness to spend after sanctions
Paulina de Lima said the situation was changing rapidly with the easing of Covid restrictions. Customers are also willing to spend. In 2022, the companies saw the fastest ever growth in sales and production. This momentum has to be maintained.