<p>New Delhi: India’s services sector expanded at its fastest pace in 11 months in July led by strong international demands, as per an industry survey report released by S&P Global on Tuesday.</p>.<p>India’s Purchasing Managers’ Index (PMI) for services rose marginally to 60.5 in July from 60.4 recorded in June.</p>.<p>"At 60.5, the services PMI indicated a strong growth momentum, led by a pick-up in new export orders,” said Pranjul Bhandari, Chief India Economist at HSBC.</p>.<p>PMI readings above 50.0 indicate growth in the sector, while those below point to a contraction. The rate of expansion in services activities in July was the best since August 2024.</p>.<p>Sustained increases in new business intakes were identified by survey members as the main aspect behind output growth. According to them, advertising, demand buoyancy and new client onboarding all underpinned the latest upturn in new orders, S&P Global noted in the report, which is based on a survey conducted among around 400 services firms in the country.</p>.Indian services sector growth touches 10-month high in June on sharp upturn in new business: PMI.<p>Finance and insurance was the best performing sector in terms of both new orders and business activity. On the other side of the spectrum was real estate and business services, where the slowest increases were registered.</p>.<p>The rate of expansion in external sales was the second-fastest in a year led by new work orders from Asia, Canada, Europe, the UAE and the US.</p>.<p>Despite strong demands and strengthening business confidence the pace of hiring in July dipped to the lowest level in 15 months.</p>.<p>“The rate of job creation was only slight, broadly converging to its long-run average. Fewer than 2% of companies took on additional staff, with the vast majority indicating no change from June,” S&P Global noted in the report.</p>.<p>On the price front, both input and output prices rose a tad faster than in June. Services companies signalled an increase in their expenses led by higher food, freight and labour costs.</p>.<p>Consumer services registered the highest rate of input cost inflation in July, while the fastest rise in output charges was noted at transport, information and communication firms.</p>
<p>New Delhi: India’s services sector expanded at its fastest pace in 11 months in July led by strong international demands, as per an industry survey report released by S&P Global on Tuesday.</p>.<p>India’s Purchasing Managers’ Index (PMI) for services rose marginally to 60.5 in July from 60.4 recorded in June.</p>.<p>"At 60.5, the services PMI indicated a strong growth momentum, led by a pick-up in new export orders,” said Pranjul Bhandari, Chief India Economist at HSBC.</p>.<p>PMI readings above 50.0 indicate growth in the sector, while those below point to a contraction. The rate of expansion in services activities in July was the best since August 2024.</p>.<p>Sustained increases in new business intakes were identified by survey members as the main aspect behind output growth. According to them, advertising, demand buoyancy and new client onboarding all underpinned the latest upturn in new orders, S&P Global noted in the report, which is based on a survey conducted among around 400 services firms in the country.</p>.Indian services sector growth touches 10-month high in June on sharp upturn in new business: PMI.<p>Finance and insurance was the best performing sector in terms of both new orders and business activity. On the other side of the spectrum was real estate and business services, where the slowest increases were registered.</p>.<p>The rate of expansion in external sales was the second-fastest in a year led by new work orders from Asia, Canada, Europe, the UAE and the US.</p>.<p>Despite strong demands and strengthening business confidence the pace of hiring in July dipped to the lowest level in 15 months.</p>.<p>“The rate of job creation was only slight, broadly converging to its long-run average. Fewer than 2% of companies took on additional staff, with the vast majority indicating no change from June,” S&P Global noted in the report.</p>.<p>On the price front, both input and output prices rose a tad faster than in June. Services companies signalled an increase in their expenses led by higher food, freight and labour costs.</p>.<p>Consumer services registered the highest rate of input cost inflation in July, while the fastest rise in output charges was noted at transport, information and communication firms.</p>