The service sector is also dead! May ‘PMI’ at 5-month low

The service sector is also dead! May ‘PMI’ at 5-month low


Refer Report

PTI, New Delhi

The monthly survey released on Wednesday revealed that activity in the country’s services sector in May slowed slightly from the month-on-month rate in April, hitting a five-month low.

The ‘HSBC India Services PMI’ index, which shows the trend of purchasing managers in India’s services sector, was recorded at 60.2 points in May. In April, this coefficient was 60.8. The index hit its lowest level since December. Although the pace of growth in services sector activity slowed in May compared to April, its rate was positive. If the service sector index is recorded above 50 points it is considered to be expansion and if it is recorded below 50 points it is considered to be contraction. This index has been recorded at 50 points since August 2021.

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Growth in the services sector slowed in May as growth in new domestic orders slowed. At the same time, a large increase in new business has been recorded. This has pushed business confidence to an eight-month high. Growth in sales, productivity gains and growth in demand have fueled the expansion of the service sector. However, competitiveness and cost pressures have restrained the sector’s growth to some extent, the survey noted.

India’s service sector growth slowed slightly in May. Domestic new orders have declined. Rising costs of raw materials and labor have also led to an increase in prices.- Maitreyi Das, Economist, HSBC India

Source: Marathi