A monthly poll that was released on Tuesday showed that India’s service sector activity in June was the strongest it has been in over 11 years as a result of an increase in demand for services.
After reaching a reading of 58.9 in May, the seasonally adjusted S&P Global India Services PMI Business Activity Index increased to 59.2 in June, reaching its highest point since April 2011. If the reading is higher than 50, it implies an increase in output on the whole.
The upturn was brought about as a result of continued increases in demand that followed the removal of pandemic limitations, capacity expansion, and an economically favourable environment.
According to Lima, economics associate director at S&P Global Market Intelligence, the increase in demand for services reached its highest point since February 2011, which contributed to a robust economic expansion for the sector during the first quarter of the fiscal year 2022-2023. This also paved the way for another substantial increase in output the following month.
“Consumer Services showed the largest increases in both output and new orders in June. Although growth rates quickened across the board.”
Despite the fact that businesses believe the recovery will continue throughout the course of the following year, company confidence has been hindered by concerns regarding price pressures.
According to the study, while reaching their lowest point in three months, cost pressures in the service industry remained persistently high in the month of June.
