Indian Services sector expanded for the first time in eleven months: HSBC’s PMI
The Services sector in India expanded for the first time in 11 months. This was revealed by the HSBC Services Purchasing Managers' Index
The Services sector in India expanded for the first time in 11 months. This was revealed by the HSBC Services Purchasing Managers' Index released on 4 June 2014.
The headline HSBC Services Business Activity Index was at 50.2 in May 2014 that increased from 48.5 in April 2014. The expansion was largely on the back of a rebound in new orders and an overall improvement in client demand.
Earlier in the first week of June 2014, the HSBC/Markit manufacturing PMI showed that the sector inched up in May 2014 driven by higher domestic and export orders.
As a result, the HSBC India Composite Output Index (inclusive of both services and manufacturing) posted 50.7 in May 2014 as against 49.5 in April 2014. The rise in the Composite Output Index indicated that overall growth increased for the first time in three months.
The HSBC Purchasing Managers Index (PMI) is one of the measures of business confidence. If the HSBC PMI is above the 50 mark, then it is indicative of expansion in the economy and when the HSBC PMI is below the 50 mark, then it is indicative of the contracting economy.
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