India's Services PMI Remains Robust In May At 61.2, Marking Second-Highest Reading In Nearly 13 Years

India's services sector showcased resilience in May, maintaining its robust performance with a Purchasing Managers' Index (PMI) of 61.2, as reported by S&P Global on 5 June.

Despite a slight decline from April's reading of 62.0, the May figure represents the second-highest PMI recorded in nearly 13 years, a report in Moneycontrol said.

Impressively, the sector has sustained expansionary growth for 22 consecutive months, remaining above the crucial threshold of 50, which separates expansion from contraction.

The PMI serves as a valuable survey-based indicator, reflecting the sentiments of approximately 400 service companies.

It encompasses a range of sectors, including non-retail consumer services, transport, information, communication, finance, insurance, real estate, and business services. Each sector contributes to an individual index, which is then combined to provide an overall PMI figure.

India's services PMI, at 61.2 in May, reinforces the sector's robustness and stability. The sustained expansionary trend for almost two years is a positive indicator for the country's overall economic growth, showcasing the resilience and strength of the services industry, experts said.

"The PMI data for May stand as a compelling testament to prevailing demand resilience, impressive output growth and job creation within India's dynamic service sector," economics associate director at S&P Global Market Intelligence, Pollyanna De Lima, noted.