India's service sector activity expanded at the fastest pace in just over thirteen years amid a substantial improvement in demand conditions, the results of the purchasing managers' survey by S&P Global showed on Thursday.
The services Purchasing Managers' Index, or PMI, climbed to 62.3 in July from 58.5 in June. A score above 50 indicates expansion in the sector.
During July, Indian service demand improved to its highest level in over 13 years, boosted by a pickup in international sales. New export orders grew at the second-fastest increase since series started in September 2014.
On the price front, input price inflation accelerated to a 13-month high in July, linked to greater food, labor, and transportation costs. Meanwhile, output prices rose at the slowest rate in three months.
Employment in the service sector increased at a modest rate, similar to that seen in the previous two months.
In assessing business activity for the year ahead, service providers were on average optimistic in July.
The composite output index came in at 61.9 in July versus 59.4 in June, indicating the fastest expansion in the private sector in thirteen years, largely led by increased service activity.
