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India’s services sector activity PMI reaches 59.2 on growth in biz activity in June 

India’s services sector activity PMI reaches 59.2 on growth in biz activity in June 

Acceleration in growth was broad-based across four monitored sub-sectors of the service economy with the sharpest spike in transport, information, and communication.

Despite a rise in the services sector activity, S&P’s experts warned about the rate of input cost inflation and higher costs of chemicals, food, petrol, retail, and staff.   Despite a rise in the services sector activity, S&P’s experts warned about the rate of input cost inflation and higher costs of chemicals, food, petrol, retail, and staff.  

India’s services sector reported growth of new business and output and improving demand. India’s service sector PMI reached from 58.9 in May to 59.2 in June as India’s business activity was at the highest since 2011 and signaled a steep increase, according to rating agency S&P Global. 

Acceleration in growth was broad-based across four monitored sub-sectors of the service economy with the sharpest spike in transport, information, and communication. S&P Global further stated, “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.” 

Commenting on the PMI numbers, Economics Associate Director at S&P Global Market Intelligence Pollyanna De Lima said, “Cost pressures in the service economy remained stubbornly high in June, despite easing to a three-month low. With companies retaining significant pricing power, owing to robust demand conditions, output charge inflation climbed to a near five-year peak.”  

Despite a rise in the services sector activity, S&P’s experts warned about the rate of input cost inflation and higher costs of chemicals, food, petrol, retail, and staff.  

Meanwhile, the country’s composite PMI reached 58.2 in June from 58.3 in May and indicated a marked rate of expansion, according to S&P Global. Aggregate new orders and private sector jobs also rose in the month.  

Jobs in the manufacturing and services sectors also rose in June. The ratingbroad-based agency stated, 

“As for selling prices, a faster increase at services firms contracted with a slower rise at goods producers. Charge inflation at the composite level was broadly unchanged from May.”