India Services PMI rebounds strongly in June

India Services PMI rebounds strongly in June

10th july 2018

The Nikkei India services Purchasing Managers’ Index, or PMI, rebounded to 52.6 in June from 49.6 in May, marking the sharpest rate of expansion in a year.
A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction.
Input cost inflation remained solid, but services providers were unable to fully pass on higher input costs to price-sensitive consumers.
“The service economy returned to expansion territory in June. Encouragingly, the latest performance was the strongest seen in a year,” said Aashna Dodhia, economist at IHS Markit, which compiles the survey.
“However, overall input costs rose at the strongest rate since July 2014, and amid a weak rupee and higher oil prices, inflation may remain elevated. Given these circumstances, the chances of further monetary policy tightening have heightened,” Dodhia added.
Source: NIKKEI ASIAN REVIEW