India’s services sector strengthened in August, supported by resilient export demand, while employment reached a 15-month high. The seasonally adjusted HSBC India Services Purchasing Managers’ Index (PMI) Business Activity Index rose to 54.1 in August, up from 53.3 in July. Despite the acceleration, the overall pace of expansion remained the second-weakest since March 2022, and stayed marginally below the long-run average of 54.5.
The report noted that new business gained momentum in August due to stronger customer demand and marketing initiatives. However, the growth rate in sales was the second-slowest in nearly four-and-a-half-years, impacted by challenging market conditions and softer client appetite in selected services.
According to the latest data compiled by S&P Global, input cost inflation edged up slightly last month due to higher spending on digital platforms, electricity, inputs, labour, marketing and regulatory requirements.
Meanwhile, the HSBC India Composite PMI Output Index stood at 54.3 in August, unchanged from July, as faster growth in services offset a slowdown in manufacturing.
