India's services sector hits 3-month high on strong demand
What's the story
India's services sector activity has witnessed a significant upswing, hitting a three-month high of 58.8 in May.
The figure, released by a private survey on June 4, is an improvement over April's reading of 58.7.
The HSBC India Services Purchasing Managers' Index (PMI) has now remained above the 58 mark for four consecutive months, indicating robust growth in this key economic segment.
It has been above the 50-mark, which separates growth from contraction, for nearly four years.
Sectoral contrast
Services sector thriving while manufacturing struggles
The performance of the services sector in May stands in stark contrast to that of the manufacturing sector.
The PMI for manufacturing has slipped to a three-month low of 57.6, with cost pressures and the mention of the India-Pakistan conflict as factors during this period.
This divergence highlights the varying dynamics and challenges faced by different sectors of India's economy at present.
Trade developments
India's exports grow at one of the highest rates
Despite the potential threat of tariffs imposed by US President Donald Trump, India has witnessed a surge in export growth.
The country's exports have reached one of their highest levels in three years.
India is now relying on a trade deal with the US to avert these tariffs and also hopes to capitalize on the global shift in supply chains away from China.