India Services Growth Hits 6-Month High

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.

The HSBC India Services PMI increased to 57.9 in April 2026 from March’s 13-month low of 57.5, signaling continued solid expansion in the services sector, preliminary estimates showed. Output and new orders continued to rise, albeit marginally. However, foreign demand growth eased to the weakest uptick in just over a year, due to the Middle East war. Employment increased, with job creation rising at a faster pace. On prices, both input and output inflation slowed. Looking ahead, business sentiment weakened amid concerns over the Middle East conflict.