India’s Services Sector Hits 10-Month High In June
The survey further said that the ongoing expansion of the Indian service sector had a positive impact on recruitment. “Employment rose for the 37th consecutive month in June, with the rate of job growth outpacing its long-run average despite slowing from May's record,” the survey said.
New Delhi: Amid positive demand trends, India's services sector grew to a ten-month high in June aided by robust expansion in international sales' order and job creation. The seasonally adjusted HSBC India services PMI business activity index rose from 58.8 in May to 60.4 in June, driven by sharp upturn in new business orders, a monthly private survey said on Thursday.
In the Purchasing Managers' Index or PMI parlance, a print above 50 means expansion, while a score below 50 denotes contraction. “The Services PMI business activity index was up to a ten-month high, led by a sharp rise in new domestic orders. New export orders also expanded, albeit at a softer pace. Margins improved, as the rise in input costs was below that seen for output charges,” said Pranjul Bhandari, chief India economist at HSBC.
As per the survey, new orders expanded at the quickest rate since August 2024. “Overseas demand particularly improved from the Asian, Middle Eastern and US markets. Services companies benefited most from the continued strength of the domestic market, alongside a marked increase in new export business. “Service providers remained optimistic about future growth, though their confidence faded a tad,” Bhandari added.
The survey further said that the ongoing expansion of the Indian service sector had a positive impact on recruitment. “Employment rose for the 37th consecutive month in June, with the rate of job growth outpacing its long-run average despite slowing from May's record,” the survey said.
On the price front, the survey said, cost pressures were most intense in the consumer services category, while the fastest upturn in output charges was noted in the finance and insurance segment. “Optimism regarding the outlook for output levels in one year time was sustained, with 18 percent of service providers forecasting growth,” the survey added.
