Financial News: India Services Growth Softens To 5-Month Low

India Services Growth Softens To 5-Month Low

06/05/2024 - 03:01:00 (RTTNews)

(RTTNews) - India's service sector activity continued to expand strongly in May, though at the slowest pace in five months amid price pressures and the intensive heatwave, the latest survey data from S&P Global showed on Wednesday.

The seasonally adjusted HSBC services purchasing managers' index dropped to 60.2 in May from 60.8 in April. However, a score above 50 indicates expansion in the sector. The flash score was 61.4.

New orders grew at the slowest pace so far this year as fierce competition and extreme heat across the country dampened growth. Nonetheless, the overall expansion was supported by favourable economic and demand conditions, in addition to successful advertising.

On a more positive note, export orders increased at the fastest pace since the survey history began in September 2014. Indian service providers received strong demand from Asia, Africa, Europe, the Middle East, and the US.

Firms have raised their staffing numbers to the greatest extent since August 2022.

On the price front, cost pressures intensified in May amid higher costs for materials such as meat, packaging, and vegetables, along with increased labour charges.

Looking ahead, business confidence among Indian service companies remained optimistic amid expectations that marketing efforts would bear fruit, coupled with improved customer engagement, demand strength, and buoyant economic conditions.

The composite output index declined to 60.5 in May from 61.5 in the previous month, indicating the slowest rate of expansion in the Indian private sector since last December.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Atlanta Fed Sees U.S. Q3 GDP Growth At 2.8% (08 hr(s), 37 min(s), 49 sec(s) ago)
(RTTNews) - The Atlanta Fed released its initial estimate for the third quarter growth based on it ...Full Story»

U.S. Consumer Sentiment Index Dips Slightly Less Than Previously Estimated In July (10 hr(s), 28 min(s), 49 sec(s) ago)
(RTTNews) - The University of Michigan released revised data on Friday showing consumer sentiment ...Full Story»

U.S. Consumer Prices Inch Up 0.1% In June, In Line With Estimates (11 hr(s), 25 min(s), 49 sec(s) ago)
(RTTNews) - Consumer prices in the U.S. crept up in line with economist estimates in the month of ...Full Story»

Spain Jobless Rate Lowest Since 2008 (11 hr(s), 39 min(s), 49 sec(s) ago)
(RTTNews) - Spain's unemployment rate fell to the lowest level in nearly 16 years in the secon ...Full Story»

Denmark Retail Sales Fall 0.1% (11 hr(s), 47 min(s), 49 sec(s) ago)
(RTTNews) - Danish retail sales decreased slightly in June after recovering in the previous month, ...Full Story»

Hungary Jobless Rate Falls To 4.3% (12 hr(s), 03 min(s), 49 sec(s) ago)
(RTTNews) - Hungary's unemployment rate decreased slightly during the April-June period, data ...Full Story»

U.S. PCE Price Index Inches Higher In June, Annual Growth Slows To 2.5% (12 hr(s), 12 min(s), 49 sec(s) ago)
(RTTNews) - Consumer prices in the U.S. crept up in line with economist estimates in the month of ...Full Story»

Russia Central Bank Hikes Rate By 200 Bps (12 hr(s), 25 min(s), 49 sec(s) ago)
(RTTNews) - Russia's central bank raised its benchmark rate by 200 basis points on Friday amid ...Full Story»