India Services Growth Strongest In 6 Months

(RTTNews) - India's services activity expanded at the fastest pace in six months, underpinned by continued growth in new business amid cooling inflationary pressures, final data compiled by S&P Global showed on Wednesday.

The seasonally adjusted HSBC India Services PMI climbed to 59.8 in May from 58.8 in April. A score above 50.0 indicates expansion. The flash score was 58.9.

The survey highlighted that output growth in May was boosted by healthy demand conditions, new client wins, and ongoing improvements in new business intakes, which grew at the fastest pace in six months.

The increase in new export orders also remained solid, linked to gains from Australia, Canada, France, Germany, Hong Kong, Malaysia, the UAE, and the UK.

Indian services companies raised their employment levels, while there was a negligible uptick in outstanding business volumes.

On the price front, input price inflation increased at a softer pace, and selling price inflation slowed to a 4-month low. The overall rise in input costs was driven by food, fuel, gas, labor, and raw materials.

The composite output index climbed to 59.3 in May from 58.2 in April, indicating a faster growth in the Indian private sector economy.