Growth of new business and activity fastest in current five-month sequences of expansion
Rate of increase in headcounts matches May's 47-month high
Input costs and output charges rise at quicker rates
India's services PMI (Purchase Managers' Index) rose to an eight month high in June at 53.1 as against 52.2 in May of 2017. This was also the fifth consecutive month of expansion as business environment for services sector in the country continued to improve.
Moreover, job creation too reached a 47-month peak, according to IHS Markit.
Pollyanna De Lima, economist at IHS Markit, and author of the report, said, "This suggests that GDP growth is likely to rebound from the sharp slowdown noted in the first three months of 2017."
“June’s results for services sounded a more upbeat tone than those from its sister PMI survey, which showed a slowdown in manufacturing. Growth of service sector activity and inflows of new business picked up as better demand conditions and marketing efforts bore fruit," she added.
The report further said, "Boosting growth of services activity in June was a solid and stronger upswing in inflows of new business. According to survey participants, improved demand conditions and marketing efforts enabled them to secure new work. Factory orders also rose, but to the least extent in four months."
It added, "Reflecting difficulties in obtaining payments from clients, outstanding business at service providers continued to rise. Nevertheless, the rate of backlog accumulation softened to the slowest in the current 13-month sequence of expansion. A weaker increase in work-in-progress was similarly noted at goods producers."