Services sector growth in July at 13-year high

NEW DELHI: Service sector growth, as measured by the Services Purchasing Managers Index, hit 62.3 points in July, as total sales grew on higher demand, according to the data released by the S&P Global Market Intelligence on Thursday

- Ashokamithran T

A reading above 50 indicates growth in the sector. The services PMI was 3.8 points more than the June reading of 58.5. This is the highest the index has reached in 13 years. The earliest available PMI data was for March 2012 when the index was at 56.5 points.

"The resilience of the service sector underscores its vital role in fueling India's economy," Polyanna De Lima, economics associate director at S&P Global Market Intelligence, said in a statement. Increase in service activity will be a major contributor to an overall GDP growth in the second quarter of 2023-24, she added.