Activity In Service Sector Hits Eight-Month High

Activity in India’s service sector hit an eight-month high with a rise in new business orders, a private survey said.

The Nikkei/IHS Markit Services Purchasing Managers’ Index (PMI) jumped to 53.1 in June from 52.2 in May, indicating an expansion.

"Growth of service sector activity and inflows of new business picked up as better demand conditions and marketing efforts bore fruit," said Pollyanna De Lima, economist at IHS Markit and author of the report.

Manufacturing activity slowed to a four-month low in June at 50.9, according to another survey from the same firm on Monday. Put together, the seasonally adjusted Nikkei India Composite PMI Output Index rose from 52.5 in May to an eight-month high of 52.7 in June and the highest since second quarter of 2016.

"This suggests that GDP growth is likely to rebound from the sharp slowdown noted in the first three months of 2017," De Lima said.