India's Service PMI sees slight fall in May but remained in expansionary phase for 22nd straight month

India's service sctor Purchasing Managers Index (PMI) declined slightly to 61.2 in May versus 62 in April. This as per the S&P Global India Services PMI.

A PMI reading of below 50 represents a contraction and a reading of above 50 represents an expansion. Witnessing a growth for the 22nd straight month, this is the longest streak of expansion in almost 12 years.

The services sector accounts for more than 50% of India's GDP.

In April, India's services activity expanded at the fastest pace in nearly 13 years.

Pollyanna De Lima, economics associate director at S&P Global Market Intelligence said, "Inflationary pressures continued to pose a challenge for service providers, with panelists noting rising costs for food, inputs, labor and transportation. “Faced with the delicate task of balancing these increases and maintaining affordable prices for consumers, firms opted to lift selling prices again in May."

Both domestic and international demand remained strong, however employment generation in the services industry saw only a marginal uptick.