NEW DELHI, Aug 31 Reuters India39;s economy grew at its fastest pace in a year in the AprilJune quarter, driven by services and manufacturing, data is expected to show on Thursday, though economists warn of a slowdown ahead.

According to the median forecast in a Reuters poll of economists, India39;s gross domestic product GDP grew 7.7 in the past quarter, up from 6.1 growth in the previous quarter and its fastest expansion since AprilJune 2022.

Economists say lower commodity prices helped manufacturers increase margins and offset the impact of 250 basis points of cumulative interest rate increases since May 2022.

Suvodeep Rakshit, economist at Kotak Institutional Equities said he expected growth to be driven by services on the output side and investment on the expenditure side.

Strong growth in India39;s services sector, which makes up more than half of its economic output, has helped Asia39;s thirdlargest economy buck the global slowdown that has left many major economies, including China, stuttering.

SP Global India services Purchasing Managers39; Index has remained firmly above the 50mark separating growth from contraction for nearly two years, the longest stretch since August 2011.

To support growth, Indian government has been frontloading its annual spending on infrastructure. In the first three months of the fiscal year that started on April 1, India had spent nearly 28 of its capital expenditure budget of 10 trillion Indian rupees 120.91 billion.

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