Economic Buzz: India Service Sector PMI At 55.5 In July

3 Aug 2022 , 01:16 PM

The recovery of the Indian service sector lost momentum during July as weaker sales growth and inflationary pressures restricted the latest upturn in business activity. While marketing efforts underpinned another rise in new work intakes, competitive pressures and unfavorable weather dampened demand. That said, the weaker recovery was supplemented by retreating price pressures. Input costs increased at the slowest rate since February, while output charges were hiked to a weaker extent than in June. Posting 55.5 in July, the seasonally adjusted S&P Global India Services PMI Business Activity Index pointed to a sharp rate of expansion. That said, falling from 59.2 in June – the highest figure in over 11 years – the latest reading indicated the slowest rate of growth in four months. Companies that signaled higher business activity mentioned ongoing improvements in sales, the offering of new services and workers taking on overtime. The rise was reportedly curbed by price pressures and US dollar strength. Underlying data indicated that the domestic market remained the key source of sales growth as international demand for Indian services worsened further.Powered by Commodity Insights