India's services sector growth rises in June on robust increase in new business, exports: PMI
The Hindu
India's services sector growth accelerates in June, driven by increased new orders and international sales, boosting business confidence.
India's services sector growth quickened in June from May's five-month low, amid a stronger rise in new orders and an unprecedented expansion in international sales, a monthly survey said on Wednesday.
The seasonally adjusted HSBC India Services Business Activity Index rose from 60.2 in May to 60.5 in June, pointing to a sharp expansion in output.
In the Purchasing Managers' Index (PMI) parlance, a print above 50 means expansion, while a score below 50 denotes contraction.
"Activity growth in India's service sector accelerated in June, with the index rising by 0.3 ppt (percentage point) to 60.5, led by an increase in both domestic and international new orders. This encouraged services firms to increase their staffing levels at the fastest pace since August 2022," said Pranjul Bhandari, Chief India Economist at HSBC.
Demand strength and rising intakes of new business were cited as the key determinants of growth. New orders received by Indian service providers continued to increase in June, extending the current sequence of expansion to nearly three years.
There was also a record expansion in international orders. Asia, Australia, Europe, Latin America, the Middle East and the US were all cited as sources of new work from abroad.
Positive client appetite encouraged service providers in India to recruit additional staff at the end of the first fiscal quarter. Staffing levels increased at the fastest pace since August 2022, as short-term and permanent staff were taken on to support pipelines of new work.
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