India’s services activities increased at the strongest rates since the year 2011. But the price rises are also at par with the increase according to the S&P Global India Services PMI Business Activity index.
The Purchasing Manger’s Index(PMI) rose from 57.9 in the last month to 58.9 in May which marked the quickest increase since the year 2011. A Purchasing Manger’s Index of over 50 margins indicates expansion in the market while below 50 margins indicates contraction in the same.
The services sector activities had picked up marginally after the month of February before which the index noted the lowest turnout in comparison to July 2021 due to the coronavirus pandemic leading to the consumers losing their purchasing capacity.
Following the relaxation of curbs in the month of February. The businesses have started expanding across without fear. This has been a crucial reason for the jump this month and therefore has led to setting the mark. “The reopening of the Indian economy continued to help lift growth in the service sector”. Pollyanna De Lima, economics associate director at S&P Global Market Intelligence, said. “Elevated price pressures continued to restrict business optimism.”
But the month was not exactly roses for the businesses altogether. As there was a sheer increase in the input prices of the products. The inflation rates had climbed the highest according to the 16 and a half years of data collection.
With the increase in the prices of different food, fuel, and transportation items. Companies are still worried about the inflationary trends of the market. The latest data suggest a subdued global demand for Indian Services.
