Service sector

India’s service sector grows the most since 2011

India’s services sector saw the fastest growth in more than 11 years in May, buoyed by strong demand growth following the reopening of the economy after the COVID-19 shutdowns, the results of an S&P Global survey were released on Friday.

The Services PMI fell from 57.9 in April to 58.9 in May, while the index is expected to fall to 57.5.

Any score above 50.0 indicates expansion. Moreover, the latest level was the highest since April 2011.

The survey showed that new Company increased at the fastest rate since July 2011.

Outstanding business among service companies grew at the fastest rate in a year. Still, service providers refrained from hiring additional workers in May.

Input price inflation hits highest level in 16½ years of data collection as food, fuel, labor, materials and transportation costs rise .

Businesses, in turn, transferred the growing burden of costs to customers by raising selling prices. The overall rate of fee inflation was the second highest in nearly five years.

Although they remain optimistic about the 12-month outlook for activity, companies are still worried that inflationary pressures could dampen the economic recovery.

Rising from 57.6 in April to 58.3 in May, the S&P Global Composite Production Index indicated the fastest rate of expansion in the private sector since last November, according to the survey.

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