India Services PMI at yearly high of 54.2 in July
Indian services sector grew to the fastest since 2016 as the Services PMI rose to 54 in July as against 52 in June.
PMI index is the global gauge for assessing the economy’s health in the different sectors. The reading of more than 50 indicates expansion and below 50 indicates contraction in the economic activity.
The Services PMI of 54.2 for the month of July indicates improvement in the service sector which is the largest employer in the private sector. The performance was encouraging as the global economy is under the shadow of slowdown due to rising trade war tensions.
Further, the private sector attrition rate also looks to slowdown and heavy hiring is expected to start soon. The strong manufacturing and services PMI indicate robust economic growth growing forward. However, the global uncertainties, strong inflation and currency depreciation will remain key risks, going forward.