Staff Reporter
India’s services sector posted its fastest growth in 10 months in June, fueled by rising demand both at home and abroad, according to the latest HSBC India Services PMI survey conducted by S&P Global.
The seasonally adjusted Purchasing Managers’ Index (PMI) for services rose to 60.4 in June, up from 58.8 in May. A PMI reading above 50 signals expansion, and June’s figure indicates a solid pace of growth.
The survey highlighted that new business orders grew at their fastest rate since August 2024, with firms citing strong momentum in the domestic economy and a significant uptick in export orders. Demand strengthened particularly from Asian, Middle Eastern, and US markets, panel participants noted.
This robust activity also supported job creation, as employment in the sector rose for the 37th consecutive month. While hiring growth outpaced its long-term average, it was slightly lower than May’s record pace.
On the cost side, input price inflation eased to a 10-month low, providing some relief to service providers. However, output charges (prices charged to customers) continued to rise at a pace above the long-run trend, though slower than in May. Meanwhile, backlogs of work also increased slightly, showing improved business momentum.
Despite strong performance indicators, business confidence weakened, with only 18% of firms expecting higher output in the next 12 months—the lowest level of optimism since mid-2022. As a result, overall sentiment fell below the long-run average.
Adding to the positive outlook, the HSBC India Composite PMI, which blends data from both services and manufacturing sectors, jumped to 61.0 in June from 59.3 in May—the fastest pace of expansion in 14 months. This coincides with the recent surge in manufacturing activity, suggesting broad-based strength across the Indian economy.
