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Informist, Tuesday, Oct. 6, 2026

 

--India Sept services PMI 55.2 vs 54.1 in Aug

--India Sept composite PMI 55.9 vs 54.3 in Aug

 

NEW DELHI – India's services sector activity improved in September compared with August due to a stronger upturn in business activity on the back of stronger sales performance and increased demand for digital services, S&P Global said Tuesday. The HSBC India Services Purchasing Managers' Index rose to 55.2 last month from 54.1 in August.

 

At 55.2, the final services purchasing managers' index for September was lower than the flash estimate of 55.8 that was released Sept. 23. A purchasing managers' index reading of more than 50 denotes expansion in activity from the previous month, while a print below 50 indicates contraction.

 

Although the index for September signalled the strongest upturn since June, it failed to lift the quarterly average above that seen in the year-ago period. "In fact, growth over the second fiscal quarter (Jul-Sept) was the weakest since the three months to March 2022 (Jan-Mar 2022)," S&P Global said.

 

The composite purchasing managers' index for September also improved from August's level to 55.9, reflecting improving performance in both the services sector and the manufacturing sector. Data released Thursday showed India's manufacturing purchasing managers' index rose to a seven-month high of 55.1 in September from 52.8 in August because of a faster increase in new orders.

 

Growth in services sector activity in September was also underpinned by a sharp increase in new orders--the fastest rate in three months. Finance and insurance and consumer services recorded the strongest expansions in both activity and sales, S&P Global said.

 

International demand for Indian services improved, with panellists reporting gains from Germany, the United Arab Emirates, the UK and the US. That said, growth of new export business eased to a moderate pace that was the slowest in close to three years, the report said. Meanwhile, outstanding business volumes increased in September after falling in the previous two months, although the rate of accumulation was only marginal, it added.

 

Improving order books and projects in the pipeline prompted service providers to recruit extra staff during September. However, employment rose at a moderate rate and one that was softer than in August. The slowdown largely reflected softer hiring among real estate and business services firms.

 

Cost pressures subsided in September, with the rate of input price inflation retreating to its weakest since November 2025, S&P Global said. "Where costs increased, panel members cited higher prices for food supplies, fuel, insurance premiums, maintenance, software and technology resources," it said.

 

Some companies passed higher expenses on to customers by raising their fees, but the overall rate of charge inflation remained moderate and eased to its lowest since June. "At the sub-sector level, increases in selling prices slowed in finance and insurance and real estate and business services, but quickened in consumer services and transport, information and communication," the report said. 

 

That said, Indian services companies remained optimistic about the year ahead, supported by resilient demand and rising customer enquiries. "The outlook remained positive, with service providers reporting improved expectations for future activity for the second consecutive month," Pranjul Bhandari, Chief India Economist at HSBC, said. End

 

Reported by Priyasmita Dutta

Edited by Akul Nishant Akhoury

 

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