India: Services PMI rises in June
The HSBC India Services Purchasing Managers’ Index (PMI) rose to 60.5 in June from 60.2 in May. As a result, the index moved further above the 50.0 no-change threshold, and signaled a faster improvement in services-sector business activity compared to the previous month.
Key factors contributing to improvement included a significant increase in new business and a record rise in exports. This robust expansion in new business, in turn, encouraged service providers to increase staffing levels at the fastest pace since August 2022.
In terms of prices, the pace of input inflation was the weakest in four months, leading to the softest uptick in output charges since February. Finally, service providers remained optimistic about the business outlook for the year ahead, although the level of optimism moderated to an 11-month low due to concerns about market uncertainty and competition.