India’s services sector expanded at its fastest pace in 13 years in the month of July amid a significant rise in demand despite elevated inflationary pressures, a business survey showed on Thursday.
S&P Global’s India services purchasing managers’ index rose to 62.3 in July, its highest index since June 2010. The services PMI increased from 58.5 in June and remained above the 50-mark that separates growth from expansion for two years.
July’s reading was far above the expectations in a Reuters poll for a dip to 58.0.
“The resilience of the service sector underscores its vital role in fuelling India’s economy, with the PMI results for July so far pointing to a notable contribution from the sector to overall GDP for the second fiscal quarter,” noted Pollyanna De Lima, economics associate director at S&P Global Market Intelligence.
Meanwhile, the manufacturing sector PMI dipped to 57.7 in July, data released on Monday showed.
Overall S&P Global India Composite PMI Output Index rose to a 13-year high of 61.9.
“Looking at PMI price indices in recent months, it seems that competitive advantage continued to support demand for Indian services, with increases in output prices here modest relative to several other nations,” added De Lima.
(With inputs from Reuters)
