India Services PMI Revised Lower, Remains at 4-Month High

The HSBC India Services PMI was revised lower to 55.8 in October 2026 from the preliminary estimate of 56.2, but remained above the previous month's reading of 55.2. Still, it marked the fastest expansion in the services sector since June, as both output and sales growth reached four-month highs. The domestic market remained the main source of sales, although new export business also increased. However, the rate of expansion was marginal and the weakest since February 2023. Employment growth eased, with job creation at its weakest in the current ten-month period. On the price front, input cost inflation eased to its lowest level in over six years and remained well below trend, despite higher electricity, labour, raw material, and transportation costs. Output costs rose marginally, at the slowest pace since June. Looking ahead, business sentiment remained positive but weakened from the previous month, remaining below its long-run average.

The HSBC India Services PMI increased to 56.2 in October 2026 from 55.2 in September, marking the fastest expansion in the sector since June, preliminary data showed. The acceleration was supported by stronger output growth amid robust demand. Employment was unchanged, ending a nine-month sequence of job creation. On the price front, input and output cost inflation eased. Looking ahead, business sentiment remained positive, strengthening from the previous month amid expectations of improved market conditions.

The HSBC India Services PMI was revised lower to 55.2 in September 2026 from the preliminary estimate of 55.8, after a final reading of 54.1 in the previous month and below the market forecast of 56.2. Still, it marked the strongest growth in the services sector since June, supported by stronger output growth amid robust demand. New orders rose at the fastest pace in three months, supported by marketing efforts and stronger demand in financial and insurance services. Foreign demand also improved, though growth eased to a moderate pace that was the softest in nearly three years. In response to improving new orders, firms increased employment, though the pace moderated and was softer than in August. On the price front, input prices rose, mainly driven by higher food supplies, fuel, and insurance premiums. Meanwhile, output inflation eased to a three-month low. Looking ahead, business sentiment improved to a three-month high, supported by resilient demand and rising customer enquiries.