Nikkei India Services PMI for April down to 53.7 from 54.3 in March

Nikkei India Services PMI index has grown sluggish at 53.7 from 54.3 in the month of March indicating slow paced  growth in the Indian economy, which is  increasingly being influenced by its service sector. 

The main reasons for the sluggish growth compared to previous month, as reported, are a softer expansion in activity clubbed with stagnant unemployment and a dip in business expectations.The number as reflected in the  PMI Index also suggests that the companies are not convincing enough as regards economic growth and recovery.Services PMI in India has averaged 51.60 points between 2012 to 2016. At 53.7 the service sector is doing well  with index points being higher than the 4 year average of 51.60 , but is down when compared to the month of March, as reported by Markit Economics.The Service PMI was at its all time high during January 2013  at 57.50 and it touched a low of 44.60 index points in the month of September 2013. 

The Nikkei India Services PMI (Purchasing Manager's Index) tracks various variables to arrive at a conclusion with the help of Index points.  Sales, employment in the service sector, and prices are the key factors affecting the Index.  A reading above 50 indicates expansion in the service sector in the economy and a reading below 50 indicates a decline in the service sector. 

Even though slow paced, the Indian service sector is the fastest growing service sector globally. It will be interesting to see if the growth momentum improves in the month of May for the service sector in India.