New Delhi, October 6 (Daily Kiran) : India’s services sector experienced a significant uptick in activity in September, marking the fastest growth in recent months. This surge is attributed to strong domestic demand and an increase in new orders, according to the HSBC India PMI data released on Tuesday.
The PMI, compiled by S&P Global, rose to 55.2 in September, up from 54.1 in August. This figure represents the highest level since June. The growth in new business was particularly noteworthy, reaching its fastest pace in the last three months. Companies reported increased demand across various sectors, including digital solutions, food and beverages, insurance, loans, software, transportation, and travel.
HSBC India highlighted that the finance, insurance, and consumer services sectors saw the most significant sales growth. Pranjul Bhandari, HSBC’s Chief Economist for India, noted that the PMI survey indicates a continuous improvement in the services sector, driven by rising domestic demand.
She also mentioned that while export activity continued to grow, the pace had slowed. Moreover, the pressure on input costs eased in September, reducing the necessity for service providers to raise their selling prices.
Despite the positive trends, the average services PMI for the July-September quarter was lower compared to the previous quarter, marking the weakest quarterly performance since the end of March 2022.
On the international front, there was an improvement in demand for Indian services. Companies reported better business from Germany, the United Arab Emirates, the UK, and the United States. However, the growth rate of new export business slowed in September. Still, a robust order book and ongoing projects facilitated further hiring by service companies.
Employment saw a moderate increase, although the rate of job creation was slightly lower than in August. The pressure from input costs diminished, with inflation of input prices hitting its lowest level since November 2025.
Additionally, the HSBC India Composite PMI Output Index, which includes both manufacturing and services, climbed from 54.3 in August to 55.9 in September.
Leave a Comment