Synopsis : India's services sector surged to a 10-month high in June, with the HSBC India Services PMI climbing to 60.4 on robust new business orders. The upturn was driven by domestic strength, steady export demand, and sustained job creation amid easing input costs.
India's services sector is riding a fresh wave of optimism as the HSBC India Services PMI Business Activity Index rose to 60.4 in June, up from 58.8 in May, marking its highest level in ten months. The sharp upturn came on the back of strong new business orders, reflecting continued strength in domestic demand and a notable rise in export orders, particularly from Asia, the Middle East, and the US.
In PMI terms, a score above 50 signals expansion, and this print highlights the resilience of India’s services sector despite a softer global environment. According to Pranjul Bhandari, Chief India Economist at HSBC, margins improved in June as the rise in input costs was lower than the increase in output charges, supporting profitability across sectors.
New orders grew at their fastest pace since August 2024, benefiting services firms, while international sales also expanded. The survey noted that consumer services faced the highest cost pressures, whereas the finance and insurance segment saw the fastest increase in output charges.
The services sector's ongoing growth positively impacted hiring, with employment rising for the 37th consecutive month, outpacing long-run averages despite a slight moderation from May’s record levels. Optimism about future output remained, though confidence dipped to its lowest since mid-2022, with 18% of firms forecasting further growth.
Meanwhile, the HSBC India Composite PMI Output Index, which combines manufacturing and services data, rose to 61 in June from 59.3 in May, marking the fastest expansion in 14 months. The survey also reported that private sector prices rose at the slowest pace in three months, while cost burdens eased to their weakest rate since August 2024, reflecting broad-based moderation across the economy.
Compiled by S&P Global, the HSBC India Services PMI captures the health of around 400 service sector companies, reflecting India’s services-led growth momentum even amid evolving global and domestic macro conditions.
Disclaimer : This article is for informational purposes only and does not constitute financial advice. Please conduct your own research or consult a professional before making any investment or economic decisions.
