Services activity soars to 10-month high in June

The uptick in India's services sector was strongest in 10 months in June, fueled by robust demand and easing inflation, according to an HSBC survey released on Thursday.

- FE BUREAU

The seasonally adjusted HSBC India Services PMI Business Activity Index—based on a single question asking how the level of business activity compares with the situation the month before—rose from 58.8 in May to a ten-month high of 60.4 in June. Monitored companies linked the upturn to positive demand trends and ongoing improvements in sales.

Price pressures eased in June, with both input cost and output charge inflation softening since May.

June data showed a strong uptick in Indian private sector activity, with the HSBC India Composite PMI Output Index rising from 59.3 in May to 61—the fastest pace of expansion in 14 months. Growth accelerated across both the manufacturing and services sectors.