Services Growth Steady in May on Robust Demand

Index at 58.8 shows another sharp rate of expansion

- FE BUREAU

SERVICES GROWTH BROADLY steadied in May, with rates of expansion in new business and activity little changed from those seen in the prior three months, according to a survey by HSBC Holdings.

Registering 58.8 in May, 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—was broadly in line April's reading of 58.7 and therefore signaled another sharp rate of expansion.

Growth was reportedly underpinned by healthy demand conditions, new client wins and greater staffing capacity.