India Services PMI Falls to 17-Month Low

The HSBC India Services PMI declined to 57.3 in June 2026 from May’s six-month high of 58.9, preliminary data showed. It was the weakest growth in the services sector since January 2025, as cost pressures and softening demand conditions curbed the latest upturn in business activity. New order growth eased, with some companies struggling to secure new work, as competitive pressures, rising fuel prices, and gas shortages were often cited as hindrances. However, foreign sales growth accelerated. Meanwhile, outstanding business volumes remained broadly unchanged. Employment increased, though at the slowest pace since December 2025. On prices, input and output price inflation moderated amid challenging demand conditions and competitive pressures. Looking ahead, business sentiment remained positive.

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.