Archive · 6 Oct 2026
India Services PMI Reaches Three-Month High, Quarterly Growth Weakens
A survey found that India’s services businesses grew faster in September than in August.
The survey score was 55.2, and a score above 50 means businesses are growing.
More customers in India helped bring in new orders.
Orders from other countries also grew, but more slowly than they had in nearly three years.
Service companies hired more workers, although they added workers more slowly than in August.
The costs businesses paid rose more slowly, and increases in prices charged to customers also eased.
A score combining services and manufacturing rose to 55.9.
Even so, the average growth over the July-to-September quarter was the weakest since the quarter ending in March 2022.
Fewer than 16% of surveyed firms expected their output to increase over the next year.
India’s Services PMI rose to 55.2 in September from 54.1 in August, below the preliminary estimate of 55.8.
Stronger domestic demand lifted new business growth to its fastest pace since June.
Export-order growth slowed to its weakest pace in nearly three years, while hiring continued at a slower rate than in August.
Input-cost inflation eased to a 10-month low, and services price inflation slowed to its lowest pace since June.
The Composite PMI rose to 55.9 from 54.3, but the July–September services growth average was the weakest since the quarter ended March 2022.
- Who
- Indian services companies, measured by the HSBC India Services PMI survey compiled by S&P Global.
- What
- Services activity grew faster in September, while average growth for the July–September quarter remained weak.
- When
- September 2026; the survey was reported on October 6, 2026.
- Where
- India.
- Why
- Stronger domestic demand and new business supported September growth; slower export growth and hiring tempered the picture.
Signs of improvement
Reasons for caution
Monthly activity and quarterly trend
Signs of improvement
September activity reached a three-month high, and new business grew at its fastest pace since June.
Reasons for caution
The July–September average was the weakest since the quarter ended March 2022, so the monthly improvement did not erase the weaker quarterly trend.
Domestic demand and exports
Signs of improvement
Stronger domestic demand supported orders, with survey reports citing demand for services including finance, consumer services and digital solutions.
Reasons for caution
Export-order growth slowed to its weakest pace in nearly three years.
Confidence and hiring
Signs of improvement
Business confidence reached a three-month high, and firms continued to add workers.
Reasons for caution
Confidence remained subdued by historical standards, hiring eased from August, and just under 16% of firms expected output to rise over the next year.
- Services PMI
- 55.2 in September, up from 54.1 in August
- Preliminary estimate
- 55.8 for September
- Expansion threshold
- A reading above 50 indicates expansion
- New business
- Growth reached its fastest pace since June
- Export orders
- Growth slowed to its weakest pace in nearly three years
- Composite PMI
- 55.9 in September, up from 54.3 in August
- Business expectations
- Just under 16% of surveyed firms expected output to increase over the next 12 months
Sources
India’s services sector growth hits three-month high: PMI survey
India’s Services PMI Hits 3-Month High of 55.2 in September, but Q2 Growth Slows to Lowest Since 2022
India services growth hits 3-month high, but Q3 expansion weakest since 2022
India services PMI rises to 55.2 in September, hits 3-month high
India services PMI rises to 55.2 in September, quarterly growth weakens
