The services sector PMI expanded at its fastest pace in 11 years in May to 58.9 against 57.9 in April on strong demand. For the 10th straight month, the services sector witnessed an expansion in output. In Purchasing Managers’ Index (PMI) parlance, a print above 50 means expansion while a score below 50 denotes contraction.
“The reopening of the Indian economy continued to help lift growth in the services sector. Business activity rose at the quickest pace in over 11 years in May, supported by the fastest upturn in new orders since July 2011,” said Pollyanna De Lima, economics associate director at S&P Global Market Intelligence.
The upturn was supported by a substantial pick-up in new business growth as demand continued to recover following the reopening of the economy after Covid-19 lockdowns, the survey said.
The latest results, however, signal subdued global demand for Indian services, with new business from abroad having now declined in each month since the onset of Covid-19 in March 2020.