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Time of India
05-08-2025
- Business
- Time of India
India's services sector logs 11-month high: Export orders, sales drive July growth; job creation slows
India's services grows (Representative image) India's services sector expanded at its fastest pace in 11 months in July, supported by a sharp rise in export orders and solid sales growth, according to the HSBC India Services PMI released Tuesday. The Services Purchasing Managers' Index (PMI) rose marginally to 60.5 in July from 60.4 in June, marking the highest level since August 2024. A reading above 50 indicates expansion, while one below 50 signals contraction. Pranjul Bhandari, Chief India Economist at HSBC, said the index reflected strong growth momentum, driven by a pick-up in new export orders, as quoted by PTI. "At 60.5, the services PMI indicated a strong growth momentum, led by a pick-up in new export orders," he said. The report noted that Indian service providers received new business from Asia, Canada, Europe, the UAE and the US. This growth in new international work was cited as the key reason for output expansion. Firms in the sector remained optimistic about output over the next year. Respondents attributed their confidence to improved efficiency, greater digital adoption, marketing efforts and technological upgrades. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Biggest Real Estate Discounts Ever at M3M India. Enquire Now! M3M India Book Now Undo However, the report also flagged an increase in input and output prices compared to June. The rise in charges was attributed to higher operating costs and strong demand. "On the price front, both input and output prices rose a tad faster than in June but this could change going forward as indicated by the recent CPI and WPI prints," Bhandari further said. Retail inflation based on the Consumer Price Index remained below 4 per cent for the fifth consecutive month, falling to 2.1 per cent in June. Wholesale inflation turned negative in June, declining by 0.13 per cent after staying positive for 19 months. Despite the strong activity, job creation slowed in July. The report recorded the lowest employment growth in 15 months, with fewer than 2 per cent of companies hiring additional staff. The release comes as the Reserve Bank of India 's Monetary Policy Committee, led by Governor Sanjay Malhotra, began its three-day policy meeting on Monday. The outcome, expected on Wednesday (August 6), is likely to see the central bank hold interest rates steady, with economists citing the need for more macroeconomic clarity following the US decision to impose a 25 per cent tariff on Indian goods from August 7. The HSBC India Composite PMI Output Index, which tracks both manufacturing and services activity, rose slightly to 61.1 in July from 61.0 in June. This marks the strongest expansion in overall private sector output since April 2024. The survey, compiled by S&P Global, gathers responses from around 400 services companies across India. Stay informed with the latest business news, updates on bank holidays and public holidays . Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
Mint
05-08-2025
- Business
- Mint
India services sector hits 11-month high in July on strong demand, export orders
New Delhi: India's services sector expanded at its quickest pace in 11 months in July, buoyed by rising new business, international orders, and robust output, a private survey showed on Tuesday. The seasonally adjusted HSBC India Services Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 60.5 in July from 60.4 in June, marking the strongest growth since August 2023. While the month-on-month rise was modest, the index has now stayed well above the 50-point threshold that separates growth from contraction for over two years, underscoring sustained momentum in the sector. 'Sustained increases in new business intakes were identified by survey members as the main aspect behind output growth,' the survey said. 'According to them, advertising, demand buoyancy and new client onboarding all underpinned the latest upturn in new orders. July's rise was sharp and the second-quickest in nearly a year (behind June).' The HSBC India Services PMI is based on responses from around 400 firms across a wide spectrum of service industries, including consumer services (excluding retail), transport, information and communication, finance, insurance, real estate, and business services. 'At 60.5, the services PMI indicated a strong growth momentum, led by a pick-up in new export orders. Future optimism rose but remained below H1, 25 levels,' said Pranjul Bhandari, chief India economist at HSBC. 'On the price front, both input and output prices rose a tad faster than in June, but this could change going forward as indicated by the recent CPI and WPI prints.' The services sector, which accounts for over half of India's gross domestic product (GDP), has been a key driver of recent economic growth. India's GDP expanded 6.5% in FY25, supported by a 7.4% growth in the March quarter. This followed a 9.2% expansion in FY24, ahead of the Reserve Bank of India's (RBI) 7% projection. The central bank expects GDP growth to remain at 6.5% in FY26, powered by rural demand, public investment, and resilient services exports. Meanwhile, manufacturing activity also gathered pace. The HSBC India Manufacturing PMI rose to a 16-month high of 59.1 in July, up from 58.4 in June, supported by solid gains in output and new orders. Together, these trends pushed the HSBC India Composite PMI Output Index up to 61.1 in July from 61.0 in June, its highest reading since April 2024. 'The upturn in business activity was supported by strengthening demand for Indian goods and services. At the composite level, the rate of sales growth hit a 15-month high,' the survey said. It added that while both input costs and output charges rose more quickly in July, only output inflation exceeded the long-run average.
Business Standard
03-07-2025
- Business
- Business Standard
India's service sector growth accelerates amid firm trend in new orders
India's service sector growth hit 10-month high in June amid faster rises in output and new orders, final data compiled by S&P Global showed today. The seasonally adjusted HSBC India Services PMI rose to 60.4 in June from 58.8 in May. The flash score was 60.7. A score above 50.0 indicates expansion. Data showed that both output and new orders grew at the fastest rates since August last year, supported by another strong expansion in international sales and job creation. Export demand particularly improved from the Asian, Middle Eastern, and US markets. Indian service sector companies faced a mild intensification of capacity pressures in June as outstanding business volumes rose faster compared to the previous month. The composite output index jumped to 61.0 in June from 59.3 in May, indicating the fastest rate of expansion in the Indian private sector in fourteen months.
India Gazette
04-06-2025
- Business
- India Gazette
India's services PMI growth continued in May; employment hits record high: HSBC PMI
New Delhi [India], June 4 (ANI): India's services sector continued to expand but at a slower phase in May 2025, with the Services PMI rising marginally to 58.8 from April's 58.7, according to the HSBC India Services PMI report released on Wednesday. The index, which is based on a monthly survey of around 400 service companies, signals expansion when the reading is above 50 and contraction when it is below that mark. It said 'Registering 58.8 in May, 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 broadly in line April's reading of 58.7 and therefore signaled another sharp rate of expansion'. The latest data showed that India's services activity remained broadly steady, with business growth supported by strong demand, new client wins, and higher staffing capacity. According to the report, the services sector maintained the sharp pace of growth seen over the past three months, reflecting the sector's resilience and ongoing economic momentum. One of the standout findings of the report was the sharp rise in international demand. In fact, survey participants reported one of the strongest improvements in export orders in the entire 19-and-a-half-year history of the PMI survey. The pace of new export business growth recorded in May was only surpassed once before, in June 2024. Firms cited strong demand from key global markets such as Asia, Europe, and North America as drivers of this performance. New orders, both domestic and international, continued to rise sharply. Companies attributed the increase to strong advertising efforts, repeat orders from existing clients, and the overall strength in demand. This consistent rise in sales led many businesses to expand their workforce. As a result, employment growth in the services sector reached a new record in May, as firms boosted staffing to meet rising workloads. HSBC said 'Ongoing improvements in demand for Indian goods and services led to survey-record increases in jobs across the two sectors. Hence, aggregate employment expanded at an unprecedented pace'. Business confidence also showed signs of recovery after dipping to a 23-month low in April. The report noted that improved sentiment stemmed from expectations of better staffing, an expanding client base, and marketing efforts that are likely to support further growth in the year ahead. Overall, the May Services PMI report highlights the continued strength of India's services economy, with steady output growth, record hiring, and improving global demand provides a positive outlook for the months to come. (ANI)
Mint
06-05-2025
- Business
- Mint
India's services sector picks up pace in April
New Delhi: India's services sector rebounded in April after a March slowdown, driven by increases in new business and output, a private survey showed on Tuesday. The seasonally adjusted HSBC India Services PMI rose to 58.7 in April from 58.5 in March, staying well above the 50-mark that signals expansion, though still below February's 59. The index stood at 56.5 in January, 59.3 in December, 58.4 in November, 58.5 in October, and 57.7 in September. Business activity in India's services sector picked up slightly in April after a March slowdown, driven by a faster rise in new orders and a corresponding uptick in employment, the survey said. Capacity pressures grew with a solid rise in unfinished work, while average charges increased at a faster pace despite cost pressures easing to a six-month low, it added. "India services activity rose at a faster pace than last month. New export orders gained momentum after taking a breather in March, accelerating at its fastest pace since July 2024," said Pranjul Bhandari, chief India economist at HSBC. "Margins improved as cost pressures eased and prices charged rose at a faster pace. Though firms remained optimistic about future growth, their confidence waned slightly," she added. India's services sector—a pillar of its economy—accounts for more than half of its gross domestic product (GDP). India's economy grew 8.2% in 2023–24, driven by a strong 7.8% expansion in the January–March quarter, surpassing the RBI's 7% forecast. However, growth lost steam in 2024–25, easing to 6.7% in the first quarter and further slowing to 5.4% in the second—its weakest pace in nearly two years—amid sluggish manufacturing, muted urban consumption, and weak corporate earnings. India's growth momentum picked up in the December quarter (Q3FY25) after a slowdown in Q2, with GDP rising 6.2%—the slowest pace since Q4FY23, excluding the previous quarter's revised 5.6%. The Reserve Bank of India (RBI) forecasts 6.5% growth for FY26, supported by rural demand, public investment, and robust services exports. India's manufacturing sector grew at its fastest pace in 10 months in April, fueled by strong demand and rising output. The HSBC India Manufacturing PMI, compiled by S&P Global, rose to 58.2 in April from 58.1 in March and 56.3 in February. A reading above 50 signals expansion. The HSBC India Composite Output Index rose to 59.7 in April, up from 59.5 in March and 58.8 in February—the fastest expansion since August 2024. "New business volumes across the private sector rose at the fastest pace in eight months, helped by a pickup in growth across the service economy. The upturn at goods producers was broadly similar to March," the survey said. "Both manufacturing firms and their services counterparts registered faster expansions in new export orders. At the composite level, the rate of growth was at a nine-month high," it added. First Published: 6 May 2025, 11:22 AM IST
