Services PMI recovers from contraction, climbs to 52.6 on jump in orders

PMI in services rose to 52.6 in June from 49.6 in May, despite high-cost inflation

A spurt in new clients even as orders from existing buyers surged meant that services sector activity in June expanded at the fastest pace in a year, showed the widely tracked Nikkei India Services Purchasing Managers’ Index (PMI).

Services PMI for June climbed to 52.6, recovering from the marginal contraction of 49.6 in May. The 50-point mark separates expansion from contraction. Despite the June data showing sustained growth in key parameters, the sector has remained volatile. In the 12 months to June, the sector contracted five times in the PMI measure.

Service activity had contracted in May for the first