India’s formal services sector showed a moderation in growth in May, according to the Sub-Sectoral Trial Index of Services Production. The latest reading indicated that only 8 of 19 sub-sectors recorded double-digit growth, down from 14 sub-sectors in April.
The slowdown was linked to lower growth in several important segments, including retail trade, road transport, information technology, and administrative and support services. Those areas appear to have weighed on the broader pace of expansion across the services economy during the month.
Even with the softer trend, some parts of the sector remained strong. Accommodation and food services emerged as the leading area of growth, highlighting continued momentum in consumer-facing and hospitality-linked activity.
The May data points to a more uneven performance within India’s services sector after a stronger April. While growth continued, the drop in the number of sub-sectors posting double-digit gains suggests that expansion became less broad-based over the month.
