services pmi up in may, highest since november
New Delhi, June 4 -- India's services sector saw its strongest expansion since November in May, buoyed by stronger demand and new business, even as input cost inflation softened, according to the HSBC India Services PMI released by S&P Global on Wednesday.
The seasonally adjusted HSBC India Services PMI Business Activity Index, which tracks changes in business activity, rose to 59.8 in May from 58.8 in April. The reading is also higher than the earlier flash estimate for the month of 58.9. A reading above 50 indicates expansion from the previous month. "India's services PMI signalled an expansion in business activity in May, supported by a continued rise in new business. External demand for India-provided services grew at a faster pace, rebounding after a sharp decline in April. Input cost inflation eased, which in turn reduced pressure on selling prices," said Pranjul Bhandari, chief India economist at HSBC.
Firms attributed the growth to healthy demand conditions, new client wins and improvements in new business intakes. New orders placed were at their highest in six months halfway through the first fiscal quarter, a significant improvement from the slowdown seen in March. While export business saw a solid rise, it was at a lower rate than for total sales and the average rate for 2025. Firms cited gains from Australia, Canada, France, Germany, Hong Kong, Malaysia, the UAE and the UK.
The composite picture also improved from the March slowdown.
The HSBC India Composite PMI Output Index, a weighted average of manufacturing output and services, rose to 59.3 in May from 58.2 in April, as new orders at private sector firms rose at the quickest pace in six months.
Data released on Monday showed the seasonally adjusted manufacturing PMI rose to 55 in May, higher than both April's final reading of 54.7 and the May estimate of 54.3....
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