The index of India’s services sector activities jumped to a record high in 11 years for the month of June, reported on Tuesday, indicating a strong demand in the country despite high prices and rising inflation figures.
The seasonally adjusted S&P Global India Services PMI Business Activity Index in June 2022 rose to 59.2 from 58.9 in May, its highest figure since April 2011.
Here’s everything you need to know about the sky-high services PMI figure for the past month.
Services PMI Output Index Stood Strong in June 2022
Despite soaring inflation and stubbornly high input costs, India’s dominant services industry grew at a record fast pace in June 2022 to hit an over 11 year high in the month at 59.2.
This gives way to understanding that despite a high price hike in items and services, the demand continues to remain at peaks in India. The prices have risen at an exceptionally sharp pace in almost five years.
Any reading above 50 means there’s a growth, in this case the reading stands at 59.2.
For the 11th consecutive month, the services sector expanded in output, with an apparently good contribution coming from the Apr-Jun 2022 quarter.
The mounting inflation has, however, affected the country’s manufacturing sector, as the manufacturing index released last week showed that the factory output expanded at its slowest rate in 9 months in June, given the elevated price pressures continuing to weigh on the demand and output, while confidence of doing business fell to its lowest in more than 2 years.
“Demand for services improved…supporting a robust economic expansion for the sector over the first quarter of fiscal year 2022/23 and setting the scene for another substantial upturn in output next month,” stated Pollyanna De Lima from S&P Global Market Intelligence.