The manufacturing and services purchasing managers’ indices (PMIs) for India moved in opposite directions in June. While the manufacturing PMI fell from 57.5 in May to 55.3 in June, the services PMI went up from 55 in May to 56.1 in June.
Also see | The Services Sector Rebounds In June (PDF)
Employment in the manufacturing sector has been contracting, while it continues to expand in services. Although the pace of increase in output prices in both services and manufacturing has been decelerating, the rebound in the services sector shows that the Indian economy continues to grow strongly and the Reserve Bank of India should, therefore, continue to tighten monetary policy at its next meeting.
Graphic by Venkatesulu/Mint
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