Service sector PMI grows fastest in 11 years: Report

An increase in demand for services, higher sales, and favourable economic conditions supported a robust expansion in the sector

July 6, 2022

The Purchasing Managers’ Index from S&P Global India for this sub-sector increased to 59.2 in June 2022

In May, the Index was at 58.9

Consumers began paying more for services such as chemicals, food and petrol, making the index come close to a five-year high

In order to fulfil demand, companies increased hiring in June

India’s services industry grew at its fastest pace in 11 years, according to data from S&P Global India’s Purchasing Managers’ Index (PMI). 

The data stated that the Index increased from 58.9 in May to 59.2 in June, and has been the highest since April 2011. 

In the PMI, a reading above 50 represents growth in the sector. The overall data in the index was strong at 58.2.  

According to experts, an increase in demand for services, higher sales, and favourable economic conditions supported a robust expansion in the sector, over the first quarter of FY22/23. This has led the index to stay above the breakeven mark consecutively for 11 months. 

Since consumers began paying more for services such as chemicals, food and petrol, the index came close to a five-year high. According to the data, the transport, and information & communication industries saw the sharpest increase in selling prices. 

In order to fulfil demand, companies increased hiring in June; this was the second increase in employment in the previous seven months.