India's services sector PMI hits 11-year high in June

ANI
05 Jul 2022, 15:07 GMT+10

India's New Delhi [India], July 5 (ANI): Services activity in India has increased in the month of June as the SP Global India Services Purchasing Managers' Index (PMI) showed a growth in comparison to the previous month, thereby hitting an eleven-year high.

In June, the index came in at 59.2, as compared to 58.9 in May, data showed.

The acceleration in the services' growth was broad-based led by improvements in demand following the retreat of pandemic restrictions, capacity expansion and a favourable economic environment, SP Global said in a statement.

"Services firms noted a substantial upturn in new work intakes at the end of the first fiscal quarter, with the rate of increase improving to the best in over 11 years. Where growth was signalled, survey members commented on strengthening demand conditions, expanded client bases and fruitful marketing," the statement added.

It further added that 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.

Stronger increases in charges were seen across the four broad areas of the service economy, with the sharpest upturn recorded in transport, information, and communication, it said.

"Unrelenting inflation somewhat concerned service providers, who were cautious in their forecasts. On average, business activity is expected to increase over the course of the coming 12 months, but the overall level of sentiment remained historically low," Pollyanna De Lima, Economics Associate Director at SP Global Market Intelligence, saidSome companies responded to capacity pressures by hiring additional staff in June, but the vast majority have left their payroll numbers unchanged. Overall, employment in services sector rose marginally in June, following a decline in May. (ANI)