Business · Economy · 10 hrs ago
India services activity reaches a four-month growth high in October
India's services sector grew faster in October, reaching its strongest pace in four months, according to a private business survey.
The HSBC India Services PMI rose to 55.8 from 55.2 in September; readings above 50 indicate growth.
Domestic demand drove the increase in new business, with sales rising at their fastest pace since June.
Input cost inflation fell to its lowest level since August 2020, though businesses still faced higher costs for items such as electricity, labour and transport.
The easing of costs brought some relief, but export orders grew at their weakest pace in nearly four years.
Hiring growth also slowed sharply, suggesting some companies had enough staff to meet current needs.
Service providers remained confident output would rise over the next 12 months, but optimism weakened and stayed below its long-term average.
India’s services activity expanded at its fastest pace in four months in October, according to the HSBC India Services PMI.
The index rose to 55.8 from 55.2 in September, remaining above the 50 mark that indicates expansion.
Strong domestic demand helped new business grow at its fastest pace since June.
Input cost inflation eased to its lowest level since August 2020, while increases in prices charged to customers also slowed.
Export-order growth and hiring weakened, and business optimism fell from September.
- Who
- Indian service-sector businesses, measured by the HSBC India Services PMI survey.
- What
- Services activity expanded at a four-month high, while cost pressures eased to a six-year low.
- When
- October 2026; the survey results were reported on November 4.
- Where
- India.
- Why
- Strong domestic demand, new client wins and advertising supported activity. The sources do not state why export-order growth and hiring slowed.
This story does not have two clearly opposing sides.
The services PMI stood at 55.2.
The services PMI rose to 55.8 as domestic demand drove faster new-business growth and input cost inflation eased.
The survey results were reported by Mint and the Economic Times.
- Services PMI
- 55.8 in October, up from 55.2 in September
- Expansion threshold
- A PMI reading above 50 indicates expansion
- Input cost inflation
- Lowest level since August 2020
- New business
- Fastest growth since June
- Composite PMI
- 56.2 in October, up from 55.9 in September
4 sources
New orders & robust demand lift India's October services growth to 4-month high
India's services PMI hits four-month high in October as demand picks up
Services sector growth hits a four-month peak in October, PMI survey shows
What people are saying
India's services PMI rose to 55.8 in October, a four-month high, as business conditions improved cautiously.
Although overall demand remained fairly strong, new export orders recorded the slowest pace of expansion since February 2023.