India's services sector activity expanded in May and the pace was the fastest in three months, driven by uptick in new orders.
The HSBC / Markit purchasing managers index for the services industry today inched up to 53.6 in May, pointing to a solid expansion in output, one that was the fastest in three months. It has registered 50.7 in April.
A reading above 50 shows that the sector is expanding, while a reading below 50 shows that the output in the sector is contracting.
The services sector which accounts around 60 per cent of the India's GDP expanded largely driven by higher levels of new work placed at private sector firms in India.
The level of positive sentiment was at a five-month high. Services firms expect that better economic conditions combined with increased marketing and the introduction of new services will lead to higher customer numbers.
The growth in the services sector contrasted with a fall registered in manufacturing output, the first decline in 50 months.
Earlier this week the HSBC / Markit manufacturing PMI showed that the manufacturing sector output fell in May, its first decline since March 2009, as order flow weakened and power outages affected the sector.
Accordingly, the HSBC India Composite Output Index, which maps both services and manufacturing activity posted 52 in May, up from 50.5 in April.
India's Economic growth rate slipped to a decade low of 5 per cent in 2012-13 on account of poor performance of farm, manufacturing and mining sectors.
Meanwhile, overall employment growth across the Indian private sector was slight and unchanged from April. Slight rises were signalled in both the manufacturing and service sectors.
The HSBC / Markit purchasing managers index for the services industry today inched up to 53.6 in May, pointing to a solid expansion in output, one that was the fastest in three months. It has registered 50.7 in April.
A reading above 50 shows that the sector is expanding, while a reading below 50 shows that the output in the sector is contracting.
The services sector which accounts around 60 per cent of the India's GDP expanded largely driven by higher levels of new work placed at private sector firms in India.
The level of positive sentiment was at a five-month high. Services firms expect that better economic conditions combined with increased marketing and the introduction of new services will lead to higher customer numbers.
The growth in the services sector contrasted with a fall registered in manufacturing output, the first decline in 50 months.
Earlier this week the HSBC / Markit manufacturing PMI showed that the manufacturing sector output fell in May, its first decline since March 2009, as order flow weakened and power outages affected the sector.
Accordingly, the HSBC India Composite Output Index, which maps both services and manufacturing activity posted 52 in May, up from 50.5 in April.
India's Economic growth rate slipped to a decade low of 5 per cent in 2012-13 on account of poor performance of farm, manufacturing and mining sectors.
Meanwhile, overall employment growth across the Indian private sector was slight and unchanged from April. Slight rises were signalled in both the manufacturing and service sectors.
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