RTTNews | Mar 3, 2021 02:50AM EST

02:50 Wednesday, March 3, 2021 (RTTNews.com) - India's service sector activity expanded at a faster rate in February, survey results from IHS Markit showed on Wednesday.

The IHS Markit services Purchasing Managers' Index rose to 55.3 in February from 52.8 in January.

Economists had forecast a score of 53.0. Any reading above 50.0 indicates expansion in the sector.

New work intake increased for the fifth month in a row in February. New export orders declined for the twelfth straight month, albeit at the weakest rate since March last year.

Employment decreased further in February. Backlogs of work was was solid and quickened from January.

Input prices rose in February and the rate of inflation accelerated to the strongest since February 2013. Selling prices remained stable.

The 12-month outlook for business activity strengthened to a year-high as the hopes on rollout of Covid-19 vaccine.

The survey showed that the composite output index, which combines services and manufacturing output, fell to 57.3 in February from 55.8 in the previous month.

"Economic activity is generally expected to recover in the final quarter of fiscal year 2020/21 after coming out of technical recession in Q3, and the latest improvement in the PMI indicators points to a strong expansion in the fourth quarter should growth momentum be sustained in March," Pollyanna De Lima, economics associate director at IHS Markit, said.

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