India’s services PMI grows for first time in 11 months
04/06/2014 13:25
India’s services sector returned to growth on increased orders after posting contraction for 11 straight months, according to HSBC Purchasing Managers's Index (PMI). The headline HSBC Services Business Activity Index rose to 50.2 in May, rising from April’s reading of 48.5, said the media report. According to the report, the rise was largely supported by a rebound in new orders and an overall improvement in client demand. “Activity in the services sector is improving gradually. Fortunately, the boost to sentiment from the strong election result will further drive up activity in the sector,” HSBC said. The Indian economy will be able to tolerate only a gradual pick up in growth, otherwise inflation will rear its head again, HSBC said. “PMIs indicate a gradual improvement in services activity, with the index creeping above the 50 level after nearly a year. The election result should add further strength to the recovery, but don’t expect soaring growth,” HSBC co-head of the Asian Economics Research Frederic Neumann said. Earlier this week, the HSBC/Markit manufacturing PMI showed that the sector inched up in May driven by higher domestic and export orders. Accordingly, the HSBC India Composite Output Index, which maps both services and manufacturing, posted 50.7 in May, up from 49.5 in April, indicated overall growth for the first time in three months. On price rise, the report said, input costs faced by service providers in India continued to rise in May, and prices charged by services companies increased for a 43rd consecutive month in May.
04/06/2014 13:25
India’s services sector returned to growth on increased orders after posting contraction for 11 straight months, according to HSBC Purchasing Managers's Index (PMI). The headline HSBC Services Business Activity Index rose to 50.2 in May, rising from April’s reading of 48.5, said the media report. According to the report, the rise was largely supported by a rebound in new orders and an overall improvement in client demand. “Activity in the services sector is improving gradually. Fortunately, the boost to sentiment from the strong election result will further drive up activity in the sector,” HSBC said. The Indian economy will be able to tolerate only a gradual pick up in growth, otherwise inflation will rear its head again, HSBC said. “PMIs indicate a gradual improvement in services activity, with the index creeping above the 50 level after nearly a year. The election result should add further strength to the recovery, but don’t expect soaring growth,” HSBC co-head of the Asian Economics Research Frederic Neumann said. Earlier this week, the HSBC/Markit manufacturing PMI showed that the sector inched up in May driven by higher domestic and export orders. Accordingly, the HSBC India Composite Output Index, which maps both services and manufacturing, posted 50.7 in May, up from 49.5 in April, indicated overall growth for the first time in three months. On price rise, the report said, input costs faced by service providers in India continued to rise in May, and prices charged by services companies increased for a 43rd consecutive month in May.
