Latest news with #CompositePMIOutputIndex
Business Standard
5 days ago
- Business
- Business Standard
India July PMI sends mixed signs on performance of the private sector
The ongoing improvements in demand for Indian services continued to underpin growth of total new orders, international sales and output. Although the upturn added pressure on firms' capacity, hiring moderated. July's increase in employment was the slowest in 15 months, despite strengthening business confidence. Meanwhile, input costs and output charges rose at faster rates than in June. At 60.5 in July, the seasonally adjusted HSBC India Services PMI Business Activity Index based on a single question asking how the level of business activity compares with the situation the month before was little-changed from 60.4 in June and therefore signalled another sharp increase in output. The rate of expansion was the best seen since August 2024. The PMI results for July revealed mixed signs regarding the performance of the Indian private sector. New orders and output expanded at quicker rates, while job creation receded and business optimism faded. Meanwhile, inflationary pressures gathered pace. The HSBC India Composite PMI Output Index was up fractionally from 61.0 in June to 61.1 in July, indicating a sharp rate of expansion that was the quickest since April 2024.
Business Times
5 days ago
- Business
- Business Times
India services growth hits 11-month high in July on stronger exports: PMI
[BENGALURU] Growth in India's services sector accelerated to an 11-month high in July, driven by strong international demand and sustained domestic sales, a survey showed on Tuesday (Aug 5). The HSBC India Services Purchasing Managers' Index (PMI), compiled by S&P Global, inched up to 60.5 in July from 60.4 in June, confounding a preliminary estimate that showed a drop to 59.8. PMI readings above 50.0 indicate growth in activity on a monthly basis while those below point to a contraction. The latest reading showed the dominant services sector has been expanding for four years. The new export business sub-index, a key gauge of international demand, showed a marked acceleration in July, registering the second-strongest expansion in a year. Total new business remained robust despite easing slightly from June's pace, supported by advertising efforts and new client acquisitions. Among service categories, finance and insurance emerged as the top performer for both new orders and business activity, while real estate and business services recorded the slowest growth. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Despite robust demand firms significantly slowed the pace of hiring to a 15-month low. Price pressures intensified in July as firms faced higher costs for food items, freight and labour. Service providers passed these increases on to customers, with the rate of charge inflation slightly exceeding input cost inflation. Any acceleration in inflation could affect the Reserve Bank of India's monetary policy decision-making. The central bank is expected to hold its repo rate steady at 5.5 per cent at its Aug 4 to 6 meeting but cut its key policy rate once next quarter, according to a Reuters poll. Business confidence improved as firms anticipated benefits from marketing initiatives, technological innovation and growing online presence. The HSBC India Composite PMI Output Index, which includes manufacturing, edged up to 61.1 in July from 61.0 in June, indicating the strongest expansion since April 2024. REUTERS
The Hindu
5 days ago
- Business
- The Hindu
Services growth hits 11-month high in July on stronger exports, PMI shows
Growth in the country's services sector accelerated to an 11-month high in July, driven by strong international demand and sustained domestic sales, a survey showed on Tuesday (August 5, 2025). The HSBC India Services Purchasing Managers' Index (PMI), compiled by S&P Global, inched up to 60.5 in July from 60.4 in June, confounding a preliminary estimate that showed a drop to 59.8. PMI readings above 50.0 indicate growth in activity on a monthly basis, while those below point to a contraction. The latest reading showed the dominant services sector has been expanding for four years. The new export business sub-index — a key gauge of international demand — showed a marked acceleration in July, registering the second-strongest expansion in a year. Total new business remained robust despite easing slightly from June's pace, supported by advertising efforts and new client acquisitions. Among service categories, finance and insurance emerged as the top performer for both new orders and business activity, while real estate and business services recorded the slowest growth. Despite robust demand firms significantly slowed the pace of hiring to a 15-month low. Price pressures intensified in July as firms faced higher costs for food items, freight and labour. Service providers passed these increases on to customers, with the rate of charge inflation slightly exceeding input cost inflation. Any acceleration in inflation could affect the Reserve Bank of India's monetary policy decision-making. The central bank is expected to hold its repo rate steady at 5.50% at its August 4-6 meeting but cut its key policy rate once next quarter, according to a Reuters poll. Business confidence improved as firms anticipated benefits from marketing initiatives, technological innovation and growing online presence. The HSBC India Composite PMI Output Index, which includes manufacturing, edged up to 61.1 in July from 61.0 in June, indicating the strongest expansion since April 2024.
News18
5 days ago
- Business
- News18
India's Services Growth Hits 11-Month High In July On Stronger Exports: PMI
The HSBC India Services PMI, compiled by S&P Global, inches up to 60.5 in July from 60.4 in June, confounding a preliminary estimate that showed a drop to 59.8. India's services sector activity surged to an 11-month high in July 2025, underpinned by strong international demand and solid domestic sales, according to the HSBC India Services Purchasing Managers' Index (PMI) released on August 5. The HSBC India Services PMI, compiled by S&P Global, inched up to 60.5 in July from 60.4 in June, confounding a preliminary estimate that showed a drop to 59.8. A PMI reading above 50 indicates expansion, while below 50 denotes contraction. With the latest reading, India's dominant services sector has now recorded expansion for four consecutive years. A key highlight of the survey was the marked acceleration in the new export business sub-index, which posted its second-best reading in the past 12 months. This suggested resilient global demand for Indian services. While overall new business slightly moderated from June, it remained firmly positive, buoyed by marketing campaigns and successful client acquisitions. Among various service categories, finance and insurance led in terms of both new order inflows and overall business activity. On the other hand, real estate and business services posted the slowest pace of expansion during the month. Even though demand conditions remained supportive, service sector firms significantly slowed their hiring activity in July. Employment growth dipped to a 15-month low, suggesting caution in workforce expansion despite healthy workloads. Cost pressures intensified during the month, with service providers experiencing higher expenses related to food, freight, and labour. As a result, companies increased selling prices, with the rate of output charge inflation slightly outpacing input cost inflation. The uptick in inflationary pressures may be a key consideration for the Reserve Bank of India (RBI) ahead of its upcoming monetary policy meeting scheduled between August 4 and 6. The central bank is widely expected to maintain the repo rate at 5.50%, though a rate cut could be on the table next quarter, as per a Reuters survey. Firms expressed greater optimism about future business conditions, citing gains from digital initiatives, technology upgrades, and marketing strategies aimed at expanding their online footprint. The HSBC India Composite PMI Output Index, which measures both manufacturing and services activity, rose marginally to 61.1 in July from 61.0 in June. This marked the strongest pace of expansion since April 2024. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Time of India
03-07-2025
- Business
- Time of India
India's services recovery gains pace: PMI at highest since August 2024; export demand stays strong
This is an AI-generated image, used for representational purposes only. India's services sector expanded at its fastest pace in ten months in June, driven by robust domestic demand, higher international sales, and continued job creation, according to the HSBC India Services PMI report released Thursday. The seasonally adjusted Services PMI Business Activity Index rose to 60.4 in June from 58.8 in May, marking its strongest reading since August 2024. In PMI terms, a score above 50 signals growth, while a figure below that threshold points to 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,' said Pranjul Bhandari, chief India economist at HSBC, as per PTI. She noted that margins improved as the increase in input costs remained lower than the hike in output prices. June saw the fastest expansion in new business orders since August 2024, with firms citing stronger domestic activity and increasing overseas demand, particularly from Asia, the Middle East, and the US. This uptick in demand also reflected positively on employment. The survey recorded the 37th consecutive month of job growth, although the pace of hiring was slightly lower than May's record high. Despite this, the hiring rate stayed above the long-term average. International sales continued to grow, and export orders remained among the highest since this metric began in 2014, reported ANI . However, the month-on-month increase in overseas orders was the slowest in three months. Sector-wise, Finance and Insurance led growth in both output and orders, while Real Estate and Business Services posted the slowest expansion. On the cost front, Consumer Services firms faced the steepest input inflation, whereas Finance and Insurance firms recorded the fastest rise in output prices. Inflationary pressures showed signs of cooling. Input costs rose at the slowest pace in ten months, and output charge inflation softened from May, though still above the historical average. Some firms noted increased staff wages but were able to pass on costs due to strong pricing power. The broader private sector also reflected this momentum, with the HSBC India Composite PMI Output Index rising to 61.0 in June, its highest in 14 months. This index combines manufacturing and services data, weighted by sector contribution to GDP. Despite strong numbers, optimism among service providers moderated. 'Service providers remained optimistic about future growth, though their confidence faded a tad,' Bhandari said, citing that only 18% of respondents expected output growth in the coming year, the lowest since mid-2022. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
