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India’s services sector growth hits 3-month high

By Sohail Khan 6 October 2026, 10:36 am

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Business News›News›Economy›Indicators›India's services sector growth at 3-month high, but quarter weakest since 2022, PMI shows

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India's services sector growth at 3-month high, but quarter weakest since 2022, PMI shows
Synopsis

India’s services sector expanded at its fastest pace in three months in September, with the HSBC Services PMI rising to 55.2 on stronger domestic demand. However, quarterly growth was the weakest since early 2022, reflecting softer hiring and exports. Manufacturing gains lifted the Composite PMI to 55.9, signalling a moderate recovery.

India's services sector growth at 3-month high, but quarter weakest since 2022, PMI shows real estate office buildings

BENGALURU: India's dominant services industry expanded at its fastest pace in three months in September on stronger demand for financial, consumer and digital services, a survey showed on Tuesday, though quarterly growth was the weakest in more than four years.

HSBC's India Services Purchasing Managers' Index (PMI) rose to 55.2 from August's 54.1, but was below a preliminary estimate of 55.8. A reading above 50.0 shows growth.

Also read: RBI seen starting rate-hike cycle, repo could rise to 6% by FY27-end: Reports

September's improvement failed to prevent the July-September average from falling to its lowest since the quarter ended March 2022, painting a less upbeat picture as hiring softened and export momentum weakened. New business – a key gauge of demand – increased at its quickest pace since June. But international demand was less buoyant with export order growth slowing to its weakest in nearly three years suggesting domestic customers provided a firmer foundation for September's acceleration.

Employment growth eased from August.

Input cost inflation was its lowest in 10 months while fees charged to customers rose at their slowest pace since June.

Business confidence improved to a three-month high but remained subdued historically. Only around 16% of firms expected activity to increase over the next year.

The services upturn, alongside manufacturing growth accelerating to its fastest since February, lifted the India Composite PMI to a three-month high of 55.9 in September from August's 54.3. Still, its quarterly average was the weakest since January-March 2022, tempering the signs of recovery.

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India services sector growthHSBC India Services PMIOctober 2023 services growthfinancial services demand Indiaconsumer services growthIndia Composite PMIHSBCeconomic recovery Indiaemployment growth in services

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