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By CNBCTV18.com Aug 3, 2022 1:20:01 PM IST (Updated)
Despite falling from a record high of over 11 years reached in June, the rather positive rating was supported by solid domestic demand. India has been struggling with high inflation, which has reached a nearly decade-high and is being compounded by rising commodity costs, like many other nations. The rupee's decline has increased imported inflation much more.
High inflationary pressures and weakening demand caused India's main services sector to see a severe growth slow in July, further lowering company forecasts. The S&P Global India Services Purchasing Managers' Index declined from 59.2 in June to 55.5 in July, its lowest since March.
However, for a year, the index has been above the 50-mark that separates growth from contraction, and the figure for July was higher than the long-term average.
Furthermore, despite falling from a record high of over 11 years reached in June, the rather positive rating was supported by solid domestic demand.