India’s dominant services sector expanded at the fastest pace in 11 years in May on strong demand, although inflationary pressures touched new highs, restricting optimism and weighing on consumers’ pocketbooks, a private survey showed. The S&P Global India Services Purchasing Managers’ Index (INPMIS=ECI) rose to 58.9 in May from 57.9 in April, its highest since April 2011 and comfortably beating the Reuters poll expectation of 57.5. It stayed above the 50-mark that separates growth from contraction for a tenth consecutive month, the longest streak of expansion since 12 months of growth between June 2018 and May 2019. Overall demand rose at the fastest pace since July 2011 as economic activity continued to normalize with the lifting of pandemic restrictions. “The reopening of the Indian economy continued to help lift […]