Explorer

Services PMI In India Dips To 58.5 In June, Lowest In Three Months

This is the lowest level since April when it was 62

India's services sector growth declined in June owing to inflation, a private survey showed on Wednesday. According to a headline figure in the Purchasing Managers' Index (PMI) survey by credit rating agency S&P Global, growth in services sector dropped to 58.5 in June from 61.2 in May. This is the lowest level since April when it was 62.

The services PMI has stayed above the key level of 50 that separates expansion in activity from a contraction for 23 months in a row.

Pollyanna De Lima, Economics associate director at S&P Global Market Intelligence, said, "Charge inflation showed some signs of stickiness, picking up only slightly from May but nevertheless reaching a near six-year high. Combined with manufacturing, output prices across the private sector increased at the sharpest pace in over a decade."

Service providers noted a sharp and quicker expansion in intakes of new business at the end of the first fiscal quarter. Positive demand trends, advertising, and favourable market conditions were among the reasons cited by survey participants for the latest upturn in sales.

"The latest PMI results for output charges coupled with upside risks to food prices suggest that interest rates are highly unlikely to be reduced as 2023 progresses," De Lima said.

This week India’s manufacturing sector activities also moderated in June from a 31-month high in May, but output remained in the growth territory, as new work orders expanded sharply amid favourable demand conditions.

The seasonally adjusted S&P Global India PMI fell from 58.7 in May to 57.8 in June. Despite the fall, the headline figure pointed to a considerable improvement in operating conditions, the survey said, adding that the demand strength positively impacted several other measures such as sales, production, stock building and employment.

The June PMI data pointed to an improvement in overall operating conditions for the 24th straight month. In PMI parlance, a print above 50 means expansion while a score below 50 indicates contraction. "June's PMI results again showed robust demand for Indian-made products, both in the domestic and international markets,” De Lima added.

View More
Advertisement
Advertisement
25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Advertisement

Top Headlines

Elections 2024: Maharashtra, Jharkhand Brace For Results Today In Mahayuti Vs MVA, INDIA Vs NDA Battles
Maharashtra, Jharkhand Brace For Poll Results Today In Mahayuti Vs MVA, INDIA Vs NDA Battles
Manipur Crisis: Govt To Deploy 90 More CAPF Companies, 258 Dead In Clashes Since May 2023, Security Advisor Says
Manipur Crisis: Govt To Deploy 90 More CAPF Companies, 258 Dead In Clashes Since May 2023
Delhi Pollution: AQI Drops To 'Severe' Again; Gopal Rai Urges Action Post SC Criticism On GRAP Enforcement
Delhi Pollution: AQI Drops To 'Severe' Again; Gopal Rai Urges Action Post SC Criticism On GRAP Enforcement
Jharkhand Election Results: Hemant Soren To Champai Soren — Battles Of Prestige And Revenge To Watch Out For
Hemant Soren To Champai Soren — Battles Of Families, Prestige & Revenge In J'khand Polls
Advertisement
ABP Premium

Videos

What will happen in the Maharashtra & Jharkhand Election Result 2024? | ABP NewsDelhi News: 'Rewadi Samvad Abhiyan launched' Cabinet Minister Imran Hussain says he will go amidst the publicBreaking News: Big news related to Maharashtra cash scandal | Vinod Tawde | BJP | Congress | ABP NewsUP Bypolls: Akhilesh gets angry as inspector points a pistol at him, makes a big revelation | ABP News

Photo Gallery

Embed widget