May marked the 23rd consecutive month to report rising input prices due to higher food, fuel, labour, material, retail and transportation costs.
May marked the 23rd consecutive month to report rising input prices due to higher food, fuel, labour, material, retail and transportation costs.
According to the S&P Global Services Purchasing Managers’ Index (PMI), the services sector this May recorded its best expansion in activity in 11 years, rising from 57.9 in April to 58.9 in May. A PMI greater than 50 indicates an increase in activity levels.
Business activity grew at the fastest pace since April 2011, with new orders increasing at the highest rate since July 2011, even as input cost pressures increased at the fastest pace since the start of the survey in December 2005 Is.
May marked the 23rd consecutive month to report rising input prices due to higher food, fuel, labour, material, retail and transportation costs, forcing firms to raise selling prices at the second highest rate in nearly five years.
Services sector firms still lost jobs in May, despite strong domestic demand, as global orders fell for the 26th consecutive month since the March 2020 COVID-19 lockdown, and sentiment amid concerns about improving inflation Been less.
Within services, consumer services was the brightest spot, even though it also faced the highest jump in input costs. Transportation, information and communication services firms at the fastest rate passed high costs to buyers.
The S&P Global India Composite PMI Output Index, which measures the performance of both the services and manufacturing sectors, rose to 58.3 in May from 57.6 in April, the fastest expansion rate since last November.
“…the overall cost burden grew at the fastest rate since March 2011. By comparison, there was a mild slowdown in cost inflation in the manufacturing industry. Concurrently, output tariffs at the aggregate level rose further, with the overall rate of inflation rising as of April 9. Slightly changed from year’s highs,” S&P Global said in a note.