India Services Sector Growth Accelerates

The HSBC India Services PMI increased to 56.2 in October 2026 from 55.2 in September, marking the fastest expansion in the sector since June, preliminary data showed. The acceleration was supported by stronger output growth amid robust demand. Employment was unchanged, ending a nine-month sequence of job creation. On the price front, input and output cost inflation eased. Looking ahead, business sentiment remained positive, strengthening from the previous month amid expectations of improved market conditions.

The HSBC India Services PMI was revised lower to 55.2 in September 2026 from the preliminary estimate of 55.8, after a final reading of 54.1 in the previous month and below the market forecast of 56.2. Still, it marked the strongest growth in the services sector since June, supported by stronger output growth amid robust demand. New orders rose at the fastest pace in three months, supported by marketing efforts and stronger demand in financial and insurance services. Foreign demand also improved, though growth eased to a moderate pace that was the softest in nearly three years. In response to improving new orders, firms increased employment, though the pace moderated and was softer than in August. On the price front, input prices rose, mainly driven by higher food supplies, fuel, and insurance premiums. Meanwhile, output inflation eased to a three-month low. Looking ahead, business sentiment improved to a three-month high, supported by resilient demand and rising customer enquiries.

The HSBC India Services PMI increased to 58.1 in September 2026 from a final 54.1 in the previous month, preliminary data showed. It was the strongest growth in the services sector since June, supported by higher output growth due to strong demand. New orders rose, supported by marketing efforts, with stronger demand in property, transport services, and new travel bookings. New order growth was also boosted by growing client interest in software and digital solutions. Meanwhile, new export orders rose solidly, though at a softer rate, while employment increased further. On the price front, both input and output price inflation eased. Finally, business sentiment improved.