Services activity at 11-year high in May on post-Covid business growth
In May, India's services activity grew at its fastest rate in over eleven years, boosted by a recovery in new business growth, with demand continuing to revive after the economy was reopened following the Covid-19 lockdowns.
The S&P Global India Services Purchasing Managers' Index (PMI) rose to 58.9 in May from 57.9 in April, the highest since April 2011. A value of more than 50 implies growth, and less than 50 indicates contraction.
According to the survey, input prices rose for the twenty-third month in a row. Services companies continued to pass on the rising cost burden to customers. India's retail inflation rate of 7.8% in April was the highest in eight years, while the wholesale price index (WPI)-based inflation rate of 15.08 percent was the highest in the current 2011-12 series.
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