PMI: India's services activity touches an eleven-year high of 59.2 in June

The jump in the services PMI corroborates the view that the services sector will lead the growth recovery in FY2023, says Aditi Nayar of Icra

India’s services activity expanded at the fastest pace in eleven years in June 2022. Rising from 58.9 in May to 59.2 in June, the seasonally adjusted S&P Global India Services PMI Business Activity Index was at its highest mark since April 2011.

The June data pointed to further accelerations in new business growth and output at Indian services companies amid ongoing improvements in demand conditions. Although firms expect the recovery to be sustained over the coming 12 months, concerns surrounding price pressures restricted business confidence. Input costs continued to rise at a historically elevated pace, although one that was the slowest