India Services Growth Revised Higher to 5-Month High

The HSBC India Services PMI was revised higher to 59.8 in May 2026 from the preliminary estimate of 58.9 and a final reading of 58.8 in April. Still, the latest reading marked the strongest growth since last November, as output continued to expand while new orders rose at the fastest pace in three months. Output growth was supported by healthy demand conditions, new client wins, and ongoing improvements in new business intakes. New export business also rose, albeit at a slower pace than total sales and the average recorded during the 2025 calendar year. Meanwhile, employment increased, with job creation remaining solid and the second-fastest in just under a year. On prices, both input and output inflation recorded their strongest increases in four months, driven by higher food, fuel, gas, labor, and material costs. Lastly, sentiment weakened to a three-month low and remained below the historical trend, though firms stayed optimistic due to expectations of favorable demand conditions.

The HSBC India Services PMI inched up to 58.9 in May 2026 from 58.8 in April, preliminary data showed. The latest reading marked the strongest growth since last November, as output continued to expand while new orders rose at a softer pace. Meanwhile, employment increased at the fastest rate in nearly a year, with job creation remaining solid. On prices, both input and output inflation eased. Looking ahead, business sentiment remained positive amid hopes of improved conditions.

The HSBC India Services PMI was revised higher to 58.8 in April 2026 from the preliminary estimate of 57.9, following March’s 13-month low of 57.5. The latest reading marked the strongest growth since last November, supported by a faster rise in new orders and output. However, foreign demand growth eased to the weakest pace in five months, due to the Middle East war and subdued inbound tourism. Employment increased, enabling firms to reduce backlogs of work for the first time in four months, though only marginally. On prices, both input and output inflation eased, although input price inflation remained among the highest in around a year and a half. Meanwhile, output prices rose moderately, marking the weakest increase in three months. Looking ahead, business sentiment weakened amid concerns over the Middle East conflict and cost pressures.