• After a marginal contraction in May, the services sector registered the fastest rate of expansion in a year, supported by a robust increase in new business orders, a monthly survey showed.

• The seasonally adjusted Nikkei India Services Business Activity Index rose from 49.6 in May to 52.6, registering the fastest growth since June 2017.

• Reflecting improved demand conditions, jobs growth in the services sector picked up from May’s five month low.
• While on the price front, input cost inflation remainedsolid overall, services providers were, however, unable to fully pass on the higher input costs to price­ sensitive consumers.

• Overall input costs rose at the strongest rate since July 2014, and amid a weak rupee and higher oil prices, inflation may remain elevated.

• Given these circumstances, the chances of further monetary policy tightening have heightened.

• PMI or a Purchasing Managers' Index (PMI) is an indicator of business activity -- both in the manufacturing and services sectors. 

• It is a survey-based measures that asks the respondents about changes in their perception of some key business variables from the month before.

• It is calculated separately for the manufacturing and services sectors and then a composite index is constructed. 
• A figure above 50 denotes expansion in business activity. Anything below 50 denotes contraction. Higher the difference from this mid-point greater the expansion or contraction.

The Hindu, ESCAP.