India’s services sector recorded the best expansion in activity this May in over 11 years, as per the S&P Global Services Purchasing Managers’ Index (PMI) which moved up from 57.9 in April to 58.9 in May. A PMI reading of over 50 indicates growth in activity levels.
Business activity rose at the quickest pace since April 2011, with new orders rising at the highest rate since July 2011, even as input cost pressures surged at the fastest pace ever since the survey’s commencement in December 2005.
May marked the 23rd successive month to report rising input prices, led by higher food, fuel, labour, material, retail and transportation costs, compelling firms to raise selling prices at the second highest rate in almost five years.
