Services sector output maintains an upsurge

Services sector output in India soared high at the second-fastest pace since July 2010. The upsurge in output was supported by the sustained growth of new businesses on account of positive demand trends.

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Services sector output in India experienced a surge at the second-fastest pace since July 2010. The increase in production was fueled by the continuous growth of new businesses driven by favourable demand patterns.

According to the seasonally adjusted S&P Global India Services PMI, Business Activity Index dropped from 62 in April to 61.2 in May. However, this remained the second-quickest rate of growth in the last 13 years.

The Services Purchasing Managers’ Index (PMI) varies between 0 and 100. A reading above 50 indicates an overall increase as compared to the previous month. A score below 50 implies an overall decrease. 

Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence said, “The PMI data for May stand as a compelling testament to prevailing demand resilience, impressive output growth and job creation within India’s dynamic service sector.” 

The service sector companies, according to the survey, expect that business activity would increase in the coming 12 months. The optimism is based on the growing demand strength, favourable market conditions and advertising.

The S&P Global India Composite PMI Output Index (the combined services and manufacturing output) was stable at 61.6 in May (as was in April month).