Service Sector Boom: India’s PMI Hits 11-Month High
India’s service sector surged to an 11-month high in July, with the Purchasing Managers’ Index (PMI) registering a robust 60.5. This significant jump is attributed to a healthy increase in both export orders and domestic sales.
Despite a rise in input and output costs, businesses remain bullish on future prospects. The positive sentiment reflects confidence in the ongoing economic recovery.
However, the report also highlighted a slowdown in hiring activity during the month. This suggests a cautious approach by businesses despite the overall optimism.
Inflationary pressures, while present, remain relatively subdued, offering some respite to the sector.
This strong performance underscores India’s resilient economic fundamentals. The sustained growth in the service sector, a major contributor to the nation’s GDP, bodes well for overall economic stability and future job creation, though the hiring slowdown warrants attention from policymakers.
