August 10, 2022
PMI Sector: Inflation hit the service sector, slowdown in July, lowest growth in 4 months

PMI Sector Growth in July 2022 : Due to the pressure of increasing competition in the business world, high inflation and adverse weather, demand was affected in the last month i.e. July 2022. Due to this, the pace of activities in the service sector of the country remained sluggish. This was the lowest in the last four months. Actually, this information came out in a monthly survey on Wednesday (3 August 2022).

Let us tell you that S&P Global’s India Services PMI Business Activity Index fell from 59.2 to 55.5 in the month of June. This is the lowest in the last four months. It is evident from these figures that, ‘India’s service sector growth slowed down in the month of July.

Expansion in service sector activity in the 12th month

In the last month i.e. July 2022, the activity growth of the service sector was the slowest in four months, but it is still progressing. Let us tell you, this is the 12th consecutive month, when the activities of the service sector have seen expansion. A score greater than 50 in Purchasing Managers’ Index (PMI) parlance means that activities are expanding. Whereas, a score less than 50 indicates contraction.

Slow growth of both ‘Sales’ and ‘Output’

According to this survey, the sales of some service providers were better in the month of July on the basis of better demand and advertisement. However, due to intense competition and unfavorable weather conditions, business growth was affected. According to Pollyanna De Lima, economics associate director at S&P Global Market Intelligence, rising competition, high inflation and unfavorable weather have affected demand. Due to this there has been a significant reduction in the pace of the ‘Service Economy’ of the country.

Sales were better in July

According to this survey, the service providers who have given information about good sales in the month of July, said this due to favorable conditions of demand and benefit of advertisement. However, the survey participants said that ‘growth has been affected due to intense competition and unfavorable weather’.

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