1. Substantial rise in exports supports overall sales 
2. Record increase in employment
3. Rates of input cost and output charge inflation quicken

Indian services growth broadly steadied in May, with rates of expansion in new business and activity little-changed from those seen in the prior three months, indicates HSBC India Services PMI Business Activity Index.

Registering 58.8 in May, the seasonally adjusted PMI Business Activity Index, based on a single question asking how the level of business activity compares with the situation the month before–was broadly in line with April’s reading of 58.7 and therefore signalled another sharp rate of expansion. 

Growth was reportedly underpinned by healthy demand conditions, new client wins and greater staffing capacity, Services sector PMI Business Activity Index, compiled by S&P Global, revealed on Wednesday.

A key area of strength was exports, with survey participants reporting one of the strongest improvements in international demand in 19-and-a-half years of data collection. 

The latest results also revealed a fresh record-rise in employment, as firms continued to adjust operating capacities in line with ongoing increases in sales.