Services PMI at over 13-year high in July, helped by strong demand
- IBEF
- August 4, 2023
According to a survey, the main services industry in India saw a significant improvement in demand conditions in July, which resulted in the sector's highest levels of new business and output in more than 13 years.
The Purchasing Managers' Index (PMI) survey's headline figure, conducted by credit rating agency S&P Global, saw a marked increase to 62.3 in July, up from 58.5 in June.
The survey polled around 400 companies across sectors such as non-retail consumer services, transport, information, communication, finance, insurance, real estate, and business services.
"The upsurge in total new orders was fuelled by a pick-up in international sales. Service providers registered the second swiftest increase in new export orders since the series began in September 2014. Demand for Indian services saw significant improvement in July, reaching its highest level in over 13 years, with approximately 29 per cent of survey participants reporting greater intakes of new business,” said the survey.
According to Ms. Pollyanna De Lima, Associate Director of Economics at S&P Global Market Intelligence, India's economy depends heavily on the service industry. According to the PMI data for July, the industry contributed significantly to the second fiscal quarter's overall GDP.
"The broad-based increases in sales across domestic and international markets are particularly encouraging, especially against the backdrop of a challenging global economic landscape. Firms reported a notable uptick in services exports to several countries, including Bangladesh, Nepal, Sri Lanka, and the UAE,” she said.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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