India: Private-sector PMI rises in May, with services PMI at highest level in over 11 years
The composite Purchasing Managers’ Index (PMI), produced by S&P Global, increased to 58.3 in May, from 57.6 in April. As a result, the composite PMI moved further above to the 50-threshold, indicating a stronger expansion in business activity from the previous month.
The services PMI jumped to 58.9 in May, from 57.9 in April, as the reopening of the economy following the easing of the Covid-19 pandemic boosted new business. The print was the highest in over 11 years. Moreover, on the manufacturing side, the PMI was broadly stable at 54.6 in May (April: 54.7), with the sector also benefitting from looser Covid-19 restrictions. Notably, elevated input charges led output price inflation to remain close to April’s nine-year high. Lastly, business confidence remained weak, despite improving from April. Businesses were concerned about the impact of elevated inflation on output.