New Delhi: Healthy rise in new orders accelerated India's services sector output growth in February. Moreover, the roll out of the Covid-19 vaccine led to an improvement in business confidence towards growth prospects.
However, employment declined for the third month in a row and companies noted the sharpest rise in overall expenses for eight years.
Consequently, rising from 52.8 in January to 55.3 in February, the seasonally adjusted India Services Business Activity Index pointed to the sharpest rate of expansion in output in one year.
The seasonally adjusted index reading remained above the critical 50-mark that separates growth from contraction.
Besides, the latest reading extended the current growth sequence to five months.
Survey participants linked the upturn to improved demand and more favourable market conditions.