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New Delhi:
India’s services sector grew faster in June amid strong growth in new orders and sharp expansion in international sales. It was at a five-month low in May. This information is provided in the monthly survey. The seasonally adjusted HSBC India Bharat Services PMI business activity index rose to 60.5 in June from 60.2 in May. This increase indicates a rapid expansion in production.
In Purchasing Managers’ Index (PMI) parlance, a score above 50 indicates expansion in activities and a score below 50 indicates contraction.
India’s service sector activity picked up in June
HSBC Chief Economist (India) Pranjul Bhandari said, “Activity in India’s services sector accelerated in June. The index rose 0.3 ppt (percentage percent) to 60.5. The main reason for this was the increase in new contracts both domestically and internationally. This encouraged service companies to increase their workforce at the fastest pace since August 2022.
Strong demand and growing new business revenue were cited as key determinants of growth. New contracts awarded to Indian service providers continued to rise in June, extending the current streak of expansion to nearly three years.
The contribution of manufacturing companies increased as compared to service companies
Meanwhile, the HSBC India Composite PMI Output Index stood at 60.9 in June from 60.5 in May, Pranjul Bhandari said, adding, “Composite PMI also rose in June, mainly due to receipt of more new contracts.” Manufacturing companies contributed more to the expansion than service companies.
The survey said that employment in the private sector has increased rapidly. This growth is one of the fastest since December 2005. The HSBC India Services PMI is prepared by S&P Global based on responses to a questionnaire sent to purchasing managers across a group of nearly 400 companies.
