Purchasing Managing Index surges to 11-year high in May

Current Context: S&P Global India Services Purchasing Managers’ Index rose to 58.9 in May from 57.9 in April, its highest since April 2011.

The reopening of the Indian economy continued to help lift growth in the service sector.
As economic activity continued to normalize with the lifting of pandemic restrictions. It separates growth from contraction for a tenth consecutive month.
The main factor behind it was Strong Services and manufacturing activity boosted the composite index to such a high level.
Apart from that country’s economy expanded 4.1% year-on-year in the January-March quarter.
As per data, there has been a rise in retail inflation due to energy and commodity price rises caused by the Russia-Ukraine war.
Besides we all knew that India’s economy is grappling with eight-year high inflation in April RBI must come up with strong policy rates to tackle it.