India Services Growth Revised Downward

2026-09-03 05:05 By Chusnul Chotimah 1 min. read

The HSBC India Services PMI was revised lower to 54.1 in August 2026 from a preliminary estimate of 54.5, following a final reading of 53.3 in the previous month, which was the weakest expansion since early 2022.

Still, the latest reading signaled accelerating growth, supported by higher demand and new business, although the pace of expansion was still the second-slowest in nearly four-and-a-half years amid challenging market conditions.

Meanwhile, new export orders rose solidly at a similar rate to July.

Employment rose further, with job creation reaching its strongest pace in 15 months.

On the price front, input price inflation accelerated slightly due to higher spending on digital platforms, electricity, inputs, labor, marketing, and regulatory requirements.

Meanwhile, output inflation also accelerated to a five-month high as firms continued to pass on higher operating costs to customers.

Lastly, business sentiment was broadly unchanged and remained below its long-run average.



News Stream
India Services Growth Revised Downward
The HSBC India Services PMI was revised lower to 54.1 in August 2026 from a preliminary estimate of 54.5, following a final reading of 53.3 in the previous month, which was the weakest expansion since early 2022. Still, the latest reading signaled accelerating growth, supported by higher demand and new business, although the pace of expansion was still the second-slowest in nearly four-and-a-half years amid challenging market conditions. Meanwhile, new export orders rose solidly at a similar rate to July. Employment rose further, with job creation reaching its strongest pace in 15 months. On the price front, input price inflation accelerated slightly due to higher spending on digital platforms, electricity, inputs, labor, marketing, and regulatory requirements. Meanwhile, output inflation also accelerated to a five-month high as firms continued to pass on higher operating costs to customers. Lastly, business sentiment was broadly unchanged and remained below its long-run average.
2026-09-03
India Services Growth Above Forecasts
The HSBC India Services PMI increased to 54.5 in August 2026 from 53.3 in the previous month, which was the weakest expansion since early 2022, and above market forecasts of 53.8, according to preliminary estimates. Still, the latest reading signaled accelerating growth, with new orders continuing to rise, though at a softer rate, while employment increased. On the price front, input prices rose at a faster rate, while output inflation also accelerated, highlighting increased efforts to pass through costs to customers. Looking ahead, business confidence strengthened amid hopes of improved market conditions.
2026-08-21
India Services Growth Revised Slightly Higher
The HSBC India Services PMI was revised slightly higher to 53.3 in July 2026 from the preliminary estimate of 53.1 but remained well below June's final reading of 57.4. Still, the latest reading signaled the weakest expansion in business activity since early 2022, as output and new order growth slowed amid softer demand, competitive pressures, and fewer new enquiries. New business inflows rose at the weakest pace since February 2022. However, new export orders remained a bright spot, accelerating on stronger demand from the UAE, UK, and US. Employment improved modestly, with service providers adding to payrolls at a faster pace after job creation slowed to a six-month low in June. On the price front, input cost inflation eased to its lowest since January, though selling charges rose at the fastest pace since April, pushing output price inflation higher. Lastly, business confidence weakened to a seven-month low despite expectations of improved demand and market conditions.
2026-08-05