(Bloomberg) -- India’s services activity climbed to a four-month high in May, boosting economic growth, a flash survey by HSBC Holdings Plc. showed. 

The services purchasing managers’ index climbed to 61.4 from 60.8 last month, while the manufacturing purchasing managers’ index eased to 58.4 from 58.8 in April. The composite index jumped to 61.7.

The indexes are based on preliminary survey results and the final data will be released next month. A reading above 50 shows expansion in economic activity compared with previous month. A print below that signals a contraction in activity. 

“The latest data showed strength in new export orders for both sectors, which rose at the fastest pace since the series started in September 2014,” Pranjul Bhandari, chief India economist at HSBC, said in a statement. The level of optimism resulted in firms increasing their staffing levels, she added. 

Strong growth in India’s dominant services sector, which contributes more than 50% to gross domestic product, has been key to creating jobs and bolstering growth in the world’s fastest growing economy. 

India’s economy is expected to expand more than 7% in the current fiscal year. Rapid expansion will also provide space for the central bank to focus on taming inflation, leading economists to push back their expectations for rate cuts to later in the year. 

Manufacturing companies continued to record a quicker increase in new orders than their services counterparts, despite posting a slowdown in rate of growth, HSBC said. 

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