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

New Delhi, July 5: Services activity in India has increased in the month of June as the S&P 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, S&P 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.