Strong domestic demand lifted services activity in May, but elevated costs, softer confidence and geopolitical risks could test the sector’s momentum in the months ahead.
New export orders also grew in May, albeit only marginally, after falling to a five-month low in April. Even so, the reading remained below the 2025 average. Survey respondents reported growth in international business from Australia, Canada, France, Germany, Hong Kong, Malaysia, the United Arab Emirates and the UK. The contours of the proposed US-India trade deal, now in the final stages of negotiation, remain a key monitorable.
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