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Economic Times
05-08-2025
- Business
- Economic Times
India's services growth scales 11-moth peak in July on global orders
Synopsis India's services sector expanded at its fastest pace in 11 months in July, with the HSBC India Services PMI rising to 60.5 from 60.4 in June, driven by strong new orders and rising international demand, especially from Asia, the US, and Europe. While optimism remained firm, job growth slowed to a 15-month low. Input and output prices rose slightly amid cost pressures. ANI India's services sector growth scaled an 11-month high in July, driven by an increase in new orders, international sales and output, a private survey showed on Tuesday. The HSBC India Services PMI Business Activity Index touched 60.5 in July, the highest since August 2024 and a shade above 60.4 in June, according to the index compiled by S&P Global. A year earlier, the reading was Managers' Index (PMI) readings above 50 indicate expansion, while those below denote contraction. "At 60.5, the services PMI indicated a strong growth momentum, led by a pickup in new export orders," said Pranjul Bhandari, India chief economist at expansion in output was primarily due to sustained increases in new business, with survey respondents attributing it to advertising, demand buoyancy and new client rise in July was the second strongest in the past year, following the performance in demand also saw a sharp increase, with firms securing new work from Asia, Canada, Europe, the UAE and the US. The rate of growth in external sales was the second-fastest in a year, after that in May. The finance and insurance sector led in both new orders and business activity, while real estate and business services recorded the slowest expansion. On average, service providers remained optimistic about future output, supported by expectations of efficiency gains, marketing, tech innovation and a growing online presence. However, Bhandari added that even as optimism regarding the future rose, it remained below the levels seen in the first half of gains were modest, with July recording the weakest job growth in 15 months."Fewer than 2% of companies took on additional staff, with the vast majority indicating no change from June," said the survey pressures persisted, with firms citing higher expenses on food, freight and labour. On the other hand, charge inflation was above its long-run average, reflecting greater cost burdens and demand strength."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 (Consumer Price Index) and WPI prints," said Bhandari.
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
