India Services Growth Hits 3-Month High

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.

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.

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.