India PMI May 2024

India: Services PMI falls in May but remains at near-record highs

The HSBC India Services Purchasing Managers’ Index (PMI) fell to 60.2 in May from 60.8 in April. As a result, the index remained above the 50.0 no-change threshold, but signaled a softer improvement in services-sector business activity compared to the previous month. That said, the print still remained among the strongest on record.

May’s PMI reading was primarily driven by softer, but still robust, increases in new business intakes; the rate of expansion eased to the slowest in the year to date, affected by intense competition, price pressures, and a stifling heatwave. More positively, new orders from international markets rose at the quickest speed since the series began nearly ten years ago.

On the pricing front, both input costs and output charges increased. Meanwhile, business sentiment rebounded, reaching its strongest in eight months. This optimism, fueled by upbeat demand conditions and successful advertising efforts, led service firms to up their staffing levels, with employment rising to the greatest extent since August 2022.

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