Service Sector LEAP: Accommodation, Food industries Surge by 27.4% as Retail Trade Booms in May 2026
The Ministry of Statistics & Programme Implementation (MoSPI) has released the Trial Index of Services Production (ISP) for May 2026, providing a granular look at performance across 19 distinct sub-sectors. The data indicates robust momentum within consumer-facing segments, with hospitality and real estate posting significant double-digit growth. While overall service sector health appears strong in key areas, the report also highlights slowdowns in specific technological and transport services.Key Growth Catalysts: Hospitality and Retail Drive Market Rally
The most striking performance marker comes from Accommodation and Food services, which recorded a massive surge of 27.4%. This segment continues to lead the market bounce among the sampled sub-sectors. Similarly, the Real Estate sector showed powerful growth, increasing its index by 17.7% in May 2026 compared to May 2025.Retail Trade performance was equally impressive, registering a healthy increase of 13.3%. This surge underscores consumer confidence and strong demand within the retail ecosystem. The fast-moving signs across hospitality and trade suggest an accelerating shift in domestic consumption patterns.
Performance Across Trading and Support Services
Trade activities exhibited varied but generally positive trends. Wholesale Trade registered growth of 3.7%, while Warehousing and support activities for transportation saw a solid rise of 11.5%. Road Transport grew by 4.4%, indicating stable momentum in ground logistics.Banking services recorded an index increase of 12.1%, suggesting continued expansion within the financial sector. Professional, scientific & technical services including R&D also performed well, posting an 11.0% growth rate, highlighting robust demand for specialized expertise. Administrative and support services grew by 5.0%.
Transportation and Technological Services Review
The transportation landscape showed a mixed picture. While Water Transport rose by 5.6%, Air Transport registered a decline of 2.8%, indicating headwinds in the aviation segment. Railway Transport increased marginally, showing a growth of 3.4% over the previous year period.In terms of technological infrastructure, Telecommunications saw strong momentum, with its ISP rising by 11.8%. IT and computer related services also improved notably, increasing by 10.3%, reflecting the steady evolution of digital demand across businesses.
Sectors Requiring Monitoring: Information and Air Transport
A close look at the data reveals areas that require attention. Information and Broadcasting faced a contraction, registering an index decline of 7.6%. This indicates potential shifts or pressures within media-related services compared to the previous year. Postal and Courier services saw marginal regression, with its ISP dropping by 1.0%.Insurance services showed growth at 2.7%, while Arts, Entertainment and Recreation Services posted a moderate rise of 1.6%. The data emphasizes that while core consumer sectors are booming, efficient management across diverse sub-sectors remains critical for overall stability.
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