India’s services sector growth accelerated in July 2023, with the Purchasing Managers’ Index (PMI) standing at 62.3 during the month as compared with 58.5 in June, according to the latest data released by S&P Global on August 3. The PMI reading of 62.3 in July is the highest print in over 13 years.
The last time it was higher than this was in June 2010. It has also stayed above the key level of 50 that separates expansion in activity from a contraction for 24 months in a row. In Purchasing Managers’ Index (PMI) parlance, a print above 50 means expansion while a score below 50 denotes contraction.
Pollyanna De Lima, economics associate director at S&P Global Market Intelligence, said, “The resilience of the service sector underscores its vital role in fuelling India’s economy, with the PMI results for July so far pointing to a notable contribution from the sector to overall GDP for the second fiscal quarter.”
Lima added that the broad increases in sales across the domestic and international markets are particularly welcoming news, especially in light of the challenging global economic scenario
The S&P Global India Services PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 400 service sector companies. The panel is stratified by detailed sector and company workforce size, based on contributions to GDP. Data collection began in December 2005.
It covers sectors including non-retail consumer services, finance, transport, communication, information, real estate, insurance, and business services.
The official data — IIP or index of eight core industries — are released with a lag of a month or more.
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