Thursday, September 29th, 2022 07:58:20

Activity in India’s Service sector in June registers highest growth in 11 years: PMI survey

Updated: July 6, 2022 12:21 pm

India’s services sector logged its fastest growth in over 11 years after June month’s service activities improved further as per the S&P Global India Services Purchasing Managers’ Index (PMI) survey. The seasonally adjusted S&P Global India Services PMI Business Activity Index rose from 58.9 in May to 59.2 in June its highest mark since April 2011.

This growth rate is the highest since April 2011 amid ongoing improvements in demand conditions, even as cost pressures in the service economy remained stubbornly high.

For the eleventh straight month, the services sector witnessed an expansion in output. In Purchasing Managers’ Index (PMI) parlance, a print above 50 means expansion while a score below 50 denotes contraction.

The upturn stemmed from ongoing improvements in demand following the retreat of pandemic restrictions, capacity expansion, and a favourable economic environment.

Firms were able to secure new orders despite charging more for their services. June data showed the fastest rise in selling prices since July 2017, as several companies sought to transfer part of their additional cost burdens to clients.

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