India’s services sector PMI rebounds in Aug’22

India’s services sector saw the sharpest rise in employment and business activity over the past 14 years. The seasonally adjusted S&P Global India Services Purchasing Managers’ Index ( PMI) Business Activity Index increased marginally from July’s four-month low of 55.5 to 57.2 in August 2022. For the past 13-months, the services sector had shown expansion in output, i.e., the score was above 50. The latest PMI data is showing an uplift in contact-intensive services including trade hotels, restaurants, and public administration. The combined services and manufacturing output rose from 56.6 in July to 58.2 in August, indicating a sharp expansion.

Indian private sector jobs expanded to a greater extent in the period under study due to significant growth in the service sector. The service company is expecting output growth for the coming 12 months.  The growth in the service sector is expected because of rapid change in market efforts and the upliftment of COVID-19 protocols. The combination of strong sales and market growth has increased employment opportunities and payroll numbers in the service sector.