Service sector at 11-year high
According to the survey, the improvement in the service sector has been seen due to the removal of epidemic restrictions, expansion of capacity and positive signs of the economy.
The service sector has not only come out completely from the effects of the pandemic. Along with this, fast growth is also being registered in it. According to the data of a survey, the service sector in the month of June (Service Sector) activities are at their highest level since April 2011, and this acceleration is being seen when inflation (inflation) the pressure is also enough. This indicates that the demand situation is improving. S&P Global India Service PMI ,Service PMI) The index has increased in the month of June at 59.2 levels, which is the highest level in more than 11 years. In the month of May, the index was at the level of 58.9.
This is the 11th consecutive month when there has been an increase in the activities of the service sector, a figure above 50 in the PMI ie Purchasing Manager Index indicates expansion in activities. Whereas a figure below 50 indicates lethargy. For the last 11 months, the PMI index has remained above 50 every month.
Expected to continue rising further
Pauliana De Lima, Economics Associate at S&P Global Market Intelligence, has said that there has been a sharp recovery in demand for the services sector. The service sector has seen a great growth in the first quarter of 2022-23 on the back of better demand and this indicates that the economy will continue to grow further. According to the members of the panel, the improvement in the service sector has been seen due to the removal of epidemic restrictions, expansion of capacity and positive signs of the economy. According to the survey, companies are able to get new orders despite being asked for higher charges for their services. According to the data for June, the selling price of services has seen the sharpest jump since July 2017. Because many companies are passing some part of their extra cost on their clients.