The services PMI for India reached 62.3 in July, the highest level since June 2010
According to statistics issued by S&P Global on August 3, India’s services PMI impressively rose to 62.3 in July, hitting its highest level since June 2010. With a strong increase in services activity, the Purchasing Managers’ Index (PMI) rose from 58.5 in June to 62.3 as of this writing.
According to the PMI statistics issued on Thursday, the country’s main services sector grew at its quickest rate since June 2010 as overall total sales significantly increased. For the last two years, the PMI has regularly been above the 50-point threshold, which denotes expansion and growth. According to the S&P Global report, this significant increase was due to the strength in demand and new business wins.
The PMI is based on a survey that solicits answers from around 400 service providers from a range of industries, including transportation, information and communication technology, non-retail consumer services, banking, insurance, real estate, and business services. The improvement in overseas sales was the main factor behind the PMI’s rise.
Notably, since the series began in September 2014, service providers reported the second-fastest growth in new export orders. S&P Global recognized Bangladesh, Nepal, Sri Lanka, and the UAE as important growth regions.
According to the S&P analysis, the Finance & Insurance sector stood out as the most promising area in terms of business activity and new orders, topping the growth rankings in both cases.
The crucial contribution of the service sector to sustaining India’s economy was stressed by Pollyanna De Lima, associate director of economics at S&P Global Market Intelligence. According to the PMI data for July, the sector likely made a significant contribution to the second fiscal quarter’s total GDP.
Given that production costs have only seen small rises in comparison to numerous other countries, it is clear from a recent analysis of PMI pricing indices that competitive advantage continues to fuel demand for Indian services. Although input cost inflation increased somewhat in July, De Lima said that service providers continued to be careful when determining prices to prevent sales from being discouraged.
The warning note in the research states that despite this, the overall level of positive attitude decreased from June’s six-month high, mostly because of worries about severe weather.
