India services PMI rises to 52.2 in May
TOKYO -- The Nikkei India Services Purchasing Managers' Index, or PMI, rose to 52.2 in May from April's 50.2, marking the highest since October.
A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction. May's growth was supported a quicker rise in new business inflows.
"The pick-up in service sector growth seen mid-way through the first quarter [of fiscal 2017] suggests that GDP could expand at a faster rate should growth momentum be maintained in June," said Pollyanna De Lima, an economist at IHS Markit.
However, the economist pointed that "Despite accelerating from April, rates of increase in both services activity and new work are much weaker than typical for India. Moreover, business confidence fell as a reflection of firms' concerns regarding competitive pressures and lackluster demand."
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