India Services PMI Indicates Fastest Rate OF Expansion In 11 Years

India service sector growth continued to strengthen in May, with companies reporting the quickest increase in business activity since April 2011. The upturn was supported by a substantial pick-up in new business growth as demand continued to recover following the reopening of the economy after COVID-19 lockdowns. Posting 58.9 in May, up from 57.9 in April, the seasonally adjusted S&P Global India Services PMI Business Activity Index indicated the fastest rate of expansion in over 11 years. Meanwhile, inflation showed no signs of abating as price gauges showed an unprecedented increase in input costs and the second-fastest upturn in selling charges in just under five years. Inflation expectations continued to restrict business confidence, with optimism remaining subdued by historical standards. Meanwhile, rising from 57.6 in April to 58.3 in May, the S&P Global India Composite PMI Output Index pointed to the fastest rate of expansion since last November led by services sector. Manufacturing Purchasing Managers' Index (PMI) stood at 54.6 in May, as against 54.7 in April.

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