The month of June was a bit soft for the service sector, which contributes a lot to the country’s economy. During the last month, India’s services sector remained on the growth path, but the pace of its growth was the slowest in three months. Latest figures show that along with this, during the month of June, the biggest increase in output charges was seen in about 6 years.
This was the service PMI in June
S&P Global’s India Services Purchasing Managers’ Index ie Service PMI came down to 58.5 in the month of June. Earlier in the month of May it was at 61.2. Earlier on Tuesday, the data of Manufacturing PMI came. If the PMI remains above 50, then it is believed that growth has been registered during that period. A PMI less than 50 means a decline and a PMI of 50 when stable.
Growth for the 23rd consecutive month
In this way, even though the PMI of the service sector has decreased during the month of June, the service sector remains in the growth zone. June 2023 has been the 23rd consecutive month when the PMI of the service sector has been above 50. In other words, during June 2023, India’s service sector has recorded growth for the 23rd consecutive month.
Such an important role of the service sector
The contribution of the service sector in India’s GDP is more than 50 percent. The service sector also makes a major contribution to India’s total exports. According to official data, the Indian economy grew at 6.1 per cent during the March quarter, after which India’s economic growth rate for the entire previous financial year stood at 7.2 per cent.
This is how the service sector got help
Pollyanna De Lima, associate director of economics at S&P Global Market Intelligence, said demand for Indian services remained high in June. New business grew sharply in all four subsectors monitored. Due to the increase in the pace of growth, there was a strong boom in business activities and due to this the employment figures also improved. A mixed trend has been observed in terms of price. The rate of increase in the cost of production has come down.
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