The Indian Express (Delhi Edition)

Services PMI rises in June on new orders

SERVICES ACTIVITY across the country improved in June, with the HSBC India Services Business Activityin­dex,orservices­pmi,risingto60.5duringthe­monthfrom five-month low of 60.2 in May. The uptick was mainly a result of strongerri­seinneword­ersandan “unpreceden­tedexpansi­on”ininternat­ional sales, a release by S&P Global said.

The pace of increase in activity was quicker than in May and above its long-run average, the global ratings agency said. Demand strength and rising intakes of new business were cited asthekeyde­terminants­ofgrowth by panellists.

The manufactur­ing activity also witnessed a considerab­le recovery in June, largely due to the same reason. Data released on Monday showed manufactur­ing PMI rising to 58.3 from 57.5 in

May. As a result, the composite PMI, a weighted average of both manufactur­ing and services PMI, increasedt­o60.9injunefro­m60.5 the previous month, S&P Global said.

During June, services firms witnessed a record expansion in internatio­nal orders from Asia, Australia, Europe, Latin America, the Middle East and the US, the ratings agency said.

A faster rise in activity also encouraged services firms to increase their staffing levels at the fastest pace since August 2022. Anecdotale­videncehig­hlighteda mixture of short-term and permanent hires for junior, medium and senior level positions, S&P Global said.

On the inflation front, panellists reported higher prices for food (chicken, eggs and vegetables) and fuel. Average input prices, however, rose at a belowtrend rate and one that was the softest in four months.