June 6, 2022
The country’s Purchasing Manager’s Index (PMI) for service sector activity increased to 58.9 in May
The PMI in April was 57.9
Services such as trade, hotels, transport, etc are growing at 5.3% on the year
The financial, real estate and professional services witnessed a growth of 4.2% in FY22
India’s service sector activities expanded at the strongest rate in over 11 years in May to a PMI of 58.9, according to a survey conducted by the S&P Global India Services PMI Business Activity Index.
According to the survey, the country’s PMI for service sector activity increased to 58.9 in May from 57.9 in April. In a PMI, a reading above 50 indicates expansion while one below 50 denotes contraction.
Healthy growth in contact-intensive services had boosted overall supply-side growth in Q4, FY23. As per the survey, services such as trade, hotels, transport, etc., crossed the pre-pandemic levels in the quarter, growing 5.3% on the year.
According to data on national income, the financial, real estate and professional services witnessed a growth of 4.2% in FY22.
On the other hand, the Centre for Monitoring Indian Economy (CMIE) said that the country’s unemployment rate fell to a four-month low of 7.12% in May, due to increased hiring across a range of sectors.