S&P Global India Services PMI Dips Slightly to 60.9 but Shows Strong Sector Resilience

India's HSBC/S&P Global Services Purchasing Managers' Index (PMI) for September finalized at 60.9, slightly lower than the flash estimate of 61.6 but still signaling robust sector growth. The services sector, a key driver of India’s economy, continues expanding at a strong pace, albeit with some moderation compared to previous months.

 

Key Insights

 

The PMI reading above 50 indicates ongoing expansion, though job creation slowed, with only around 5% of service providers increasing payrolls.

 

New business growth softened, with foreign sales rising at the slowest pace since March 2025, reflecting some external demand challenges.

 

Both input and output inflation eased, suggesting alleviated cost pressures on service providers.

 

Outstanding business rose marginally, signaling moderate backlog accumulation.

 

Sector Outlook

While growth momentum has tempered, the services sector remains resilient, supported by stable demand and easing inflation, offering optimism for sustained expansion in the quarters ahead.

 

Source: S&P Global, HSBC, Trading Economics, Business Standard