The Service PMI for India fell to 61.2 in May, although activity is still robust.

The Purchasing Managers’ Index for the service sector in India fell from 62.0 in April to 61.2 in May of this year. The May services PMI, which stands at 61.2, is the second-highest reading in little under 13 years. Additionally, it has spent 22 consecutive months above the critical threshold of 50, which distinguishes an increase in activity from a decrease.

A survey-based indicator, the PMI is based on the opinions of around 400 service providers. The industries it covers include transportation, information, communication, finance, insurance, real estate, and business services. It also covers non-retail consumer services. Each sector’s index is computed, and the totals are added together to produce the PMI score.

The S&P Global India Service PMI exceeded the Reuters Poll projection of 60.0, according to the Reuters report.

With the index staying over the 50-point threshold that distinguishes growth from expansion for 22 months, it was the longest run of expansion in nearly 12 years.

In India, the service industry contributes more than 50% of the country’s GDP. One of the fastest-growing developing economies, Asia’s third-largest economy grew by 6.1% in the third quarter. Inflation has remained over the central bank’s goal range of 2 to 6% for the most of 2022, despite the RBI boosting interest rates by 250 basis points since May of last year.

Pollyanna De Lima, assistant director of economics at S&P Global Market Intelligence, said that “inflationary pressures continued to pose a challenge for service providers, with panellists noting rising costs for food, inputs, labour, and transportation.”