India's services growth defies inflation pressures but falls to 61.2 in May from 62 in April

S&P Global said on Tuesday that its India Services Purchasing Managers’ Index fell to 56.9 in November from 58.4 in October.

The S&P Global India services Purchasing Managers' Index fell to 61.2 in May from 62.0 in April, but outstripped the Reuters poll expectation of 60.0. The services sector accounts for more than 50% of India's gross domestic product. Asia's third-largest economy expanded 6.1% in the March quarter, one of the fastest growing emerging markets.

While services firms displayed robust performance, export growth was impacted by the slowdown in the global economy.

India Business News: ​The S&P Global India services Purchasing Managers' Index surged to 62.0, surpassing all expectations in a Reuters poll that had predicted a drop to 5

The S&P Global India services Purchasing Managers' Index fell to 57.8 last month from 59.4 in February, lower than a Reuters poll forecast of 58.3.But it stayed above the 50-mark separating growth from contraction for a 20th consecutive month.

India's dominant services sector expanded at its fastest pace in 13 years last month as demand increased significantly despite elevated inflationary pressures, a business survey showed on Thursday.

India's services sector maintained strong growth in May, according to a survey by S&P. The India Services PMI Business Activity Index fell to 61.2 from 62 the previous month, but remained above the threshold that defines growth. The results reflect the resilience of the country's demand and growth, as well as expansion in new export business for the fourth straight month. The increases in output were, however, mirrored by rising input prices, which have risen at the fastest rate since last December.

The S&P Global India Services Purchasing Managers' Index rose from 57.2 in January to 59.4 in February, its highest since February 2011 and considerably above all forecasts in a Reuters poll which had predicted a fall to 56.2

The S&P Global India Manufacturing Purchasing Managers’ Index (PMI) surged to a 31-month high of 58.7 in May, with factory orders rising at the fastest clip since January 2021 and producers accumulating inputs at an unprecedented pace thanks to lower costs.

India’s Services sector growth lost some momentum in March 2023 even as input cost inflation dropped to a 30-month low. Firms passed on higher costs to clients at a pace that was the highest in three months.