Economic Buzz: Indias Services Sector Growth Improves In June

Indias service sector growth accelerated unexpectedly in June to remain at its highest level in more than eleven years, as output and new orders grew at an accelerated rate amid improving demand conditions, survey results from S& P Global showed. The services Purchasing Managers Index climbed to 59.2 in June from 58.9 in May. A score above 50 indicates expansion in the sector. A favorable economic environment, capacity expansion and on-going improvements in demand were attributed to the upturn in the headline index. Input price inflation remained historically high in June, led by higher chemical, food, petrol, retail and staff costs. However, the rate of inflation was the weakest in three months. Employment levels in the Indian service sector rose marginally in June, after declining in the previous month. The survey also revealed that the outstanding business rate increased for the sixth consecutive month and at the fastest rate since February 2021. Powered by Commodity Insights