Business: PMI: Despite a slight decrease in May, the second strongest growth in the country’s service sector in 13 years

Growth in the country’s services sector slowed slightly in May, but posted the second-strongest growth in 13 years on favorable demand conditions and new customers. The seasonally adjusted S&P Global India Services PMI business activity index fell from 62 in April to 61.2 in May. Despite a decline from April, the latest reading indicated that output had registered its second-fastest increase since July 2010.

The figure remained above the neutral 50 range for the 22nd consecutive month. In Purchasing Managers’ Index (PMI) parlance, a figure above 50 indicates expansion, while a score below 50 indicates contraction. “The PMI data for May is a compelling testament to the ongoing demand resilience, impressive output growth and job creation in India’s dynamic services sector,” said Pauliana De Lima, Associate Director of Economics at S&P Global Market Intelligence.

Additionally, the companies monitored expanded their workforce to accommodate the increased workload. At the same time, service companies have expressed hope that business activities will increase in the coming 50 months. The reasons cited for optimistic forecasts include advertising, strength in demand and favorable market conditions, the survey said. Meanwhile, the S&P Global India Composite PMI Output Index stood at 61.6 in May, unchanged from April.