India Services PMI rose to 55.7 in June
India's service sector has recorded a strong growth in the month of June as the HSBC India Services Purchasing Managers Index (PMI), which is an index of activity in the sector, rose to 55.7 in June.
The service sector PMI in May was recorded at 55.3 in May. The growth in the service sector PMI is the faster recorded in four months by the country. June marks the eighth straight month of growth for the index. Experts say that a reading above the mark of 50 indicates expansion of the industry while that below 50 shows contraction.
"While service sector activity grew at a slightly slower pace, new orders grew faster and this should hold up activity in coming months," said HSBC Chief Economist for India and ASEAN Leif Eskesen.
The figure for the month shows an improvement in the volume of work in-hand at the country's services firms as well as an expansion of the services sector workforce, according to HSBC. The service sector firms have increased staffing levels in the month and have reduced the work back log. The increase in payroll numbers was the strongest since June 2011, according to the firm.