BackAfter 11 months, a small bounce in services
The HSBC India Composite Index came in at 50.7 in May, indicating growth in private sector activity from previous month
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The HSBC India Composite Index came in at 50.7 in May, indicating a growth in the private sector activity from the previous month. The increase in output, the first in three months, came on the back of the first expansion in the services sector in 11 months. It means that after contracting for 11 months, the services sector expanded a bit in May.
The business environment continues to be fragile. “The latest increase in activity was only marginal and weak in the context of historical data," the report from Markit Economics said. “Divergent trends were seen at the sub-sector level, with only post and telecommunication, and renting and business activities registering higher output."
That said, there has been a slight rise in new orders in both the services and manufacturing sectors. The pace of increase in the output prices sub-indices was also slight, indicating lack of pricing power among firms and lower inflation.
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