June 4, 2022

The Services Boom! Business activity in the sector at an 11-year high, indicating robust demand & job growth.

Services activity up fastest in 11 years

NEW DELHI: Activity in the country’s crucial services sector expanded at its strongest rate in over 11 years in May on the back of sharp growth in new business as demand recovered after the lifting of curbs. But input cost inflation jumped to a record high, a survey showed on Friday. Posting a reading of 58. 9 in May, up from 57. 9 in April, the S&P Global India Services PMI business activity Index indicated the fastest rate of expansion in over 11 years.
Anecdotal evidence suggested that the upturn in output reflected better underlying demand and strong inflows of new work. The S&P Global India Services PMI is compiled from responses to questionnaires and serves as an advance indicator of demand conditions in the sector. The latest data revealed an acceleration in growth of new business. The increase was sharp and the quickest since July 2011.
But inflation showed no signs of abating as price gauges showed an unprecedented increase in input costs and the second-fastest upturn in selling charges in just under five years.

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