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Services sector in India recorded a robust performance and the output rose at the second-quickest pace since July 2010, according to S&P Global India Services PMI released on Monday.
The growth was supported by sustained growth of new business in the face of positive demand trends. However, the service economy also endured an intensification of inflationary pressures as evidenced by stronger increases in both input costs and output charges. Services Purchasing Managers' Index in May was 61.2 versus 62.0 in April, data showed. The indices vary between 0 and 100, with a reading above 50 indicating an overall increase compared to the previous month, and below 50 an overall decrease. "The PMI data for May stand as a compelling testament to prevailing demand resilience, impressive output growth and job creation within India's dynamic service sector," Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, said. However, inflationary pressures continued to pose a challenge for service providers. "With policymakers closely monitoring inflation developments, long-waited cuts to interest rates -- which could aid business strategies, budgeting and investment plans -- appear more distant," said Pollyanna De Lima. Meanwhile, India's manufacturing sector too showcased encouraging growth in May and painted a positive picture for the industry. According to S&P Global's India Manufacturing Purchasing Managers' Index released Thursday, it rose from 57.2 in April to 58.7 in May, indicating the most robust improvement in the health of the sector since October 2020 or a 31-month high. (ANI)
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