A key index of services activity in the country jumped to a more than a 11-year high as rising demand overcame the pressure on prices caused by higher input costs.
The seasonally adjusted S&P Global India Services PMI Business Activity Index rose to 59.2 in June from 58.9 in May — the highest since April 2011.The services sector witnessed an expansion in output for the eleventh straight month.
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Demand conditions improved as the economy yanks itself out of the torpor of the Covid-19 pandemic, although cost pressures in the service economy remained stubbornly high, the survey said on Tuesday.
In Purchasing Managers’ Index (PMI) parlance, a print above 50 means expansion while a score below 50 denotes contraction.
“Demand for services improved to the greatest extent since February 2011, supporting a robust economic expansion over the first quarter of the fiscal and setting the scene for another substantial upturn next month,” said Pollyanna De Lima, economics associate director at S&P Global Market Intelligence.