BENGALURU, July 5 Reuters India39;s service sector growth weakened to a threemonth low but remained resilient in June amid strong demand, according to a private business survey on Wednesday, despite prices rising at their quickest pace in nearly six years.
Sustained growth in the sector, which accounts for around 60 of overall output, indicates Asia39;s thirdlargest economy will continue to outpace many of its major peers over the coming quarters.
The SP Global India services Purchasing Managers39; Index PMI fell to 58.5 last month from 61.2 in May and was lower than a Reuters poll prediction for 60.2.
But it was still firmly above the 50mark separating growth from contraction. It has been above breakeven for nearly two years, the longest stretch since August 2011.
Demand for Indian services continued to surge higher in June, with all four monitored subsectors registering quicker increases in new business inflows, noted Pollyanna De Lima, economics associate director at SP Global Market Intelligence.
This bullish pickup in growth momentum supported a further sharp upturn in business activity and encouraged another uplift in employment figures, boding well to nearterm growth prospects.
A new business subindex, a proxy for overall demand, rose to 58.8 last month from 58.4 and services firms added jobs for a 13th consecutive month. Business optimism was at its highest so far this year.
However, the slowing global economy dragged export growth to a threemonth low….