New Delhi, Oct 6 (IANS) India’s services sector expanded at its fastest pace in three months in September due to stronger domestic demand and sharp rise in new orders, according to HSBC India PMI data released on Tuesday.
The seasonally adjusted HSBC India Services PMI Business Activity Index rose to 55.2 in September from 54.1 in August which signals the strongest expansion since June.
Moreover, new business increased sharply in September and at the fastest pace in three months with firms reporting stronger demand for digital solutions, food, insurance, loans, software, transportation, tours and travel.
Finance and insurance and consumer services recorded the strongest increases in activity and sales, HSBC India said.
“The PMI survey suggested that India’s services sector continued to improve, supported by strengthening domestic demand,” said Pranjul Bhandari, chief India economist at HSBC.
“At the same time, export business continued to expand, although the pace of growth slowed,” she said, adding that easing input-cost pressures had reduced the need for service providers to raise selling prices.
However, HSBC India Services PMI Business Activity averaged lower in the July-September quarter than in the previous quarter and recorded its weakest quarterly performance since the three months to March 2022, the data showed.
In addition, international demand for Indian services also improved with firms reporting stronger business from Germany, the United Arab Emirates, the UK and the US.
Growth in new export business slowed to a moderate pace. Improving order books and projects in the pipeline supported further hiring by services companies in September.
Employment rose at a moderate pace, although the rate of job creation eased from August.
Input cost pressures also eased with inflation in input prices falling to its weakest level since November 2025.
Selling price inflation remained moderate and eased to its lowest level since June, reducing pressure on firms to raise charges.
Additionally, business confidence strengthened to a three-month high with firms citing resilient demand and rising customer enquiries.
Notably, HSBC India Composite PMI Output Index — which covers both manufacturing and services — rose to 55.9 in September from 54.3 in August, suggesting the fastest expansion in private-sector output since June, the data showed.
–IANS
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