HSBC’s India Services Purchasing Managers’ Index, compiled by S&P Global, rose to 54.1 in August from July’s 53.3, but was slightly lower than a preliminary estimate of 54.5.
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Contrary to manufacturing, services sector in India improved in August though overall activity was near its weakest in more than four years, a survey report released by S&P Global showed on Thursday. Result of the survey, better known as Purchasing Managers’ Index (PMI), moved up to 54.1 in August.It was 53.3 in July. Despite the improvement, the August reading was the second weakest since March 2022 and remained marginally below its long-run average of 54.5. However, the good news is that firms ramped up hiring at the fastest pace in over a year. The survey is based on responses from purchasing executives of 400 companies in services sector. An index above 50 means expansion and below 50 means contraction.“India’s services activity expanded faster in August. Growth was supported by stronger output and new business, although the overall pace was still among the weakest seen in over four years,” said Pranjul Bhandari, chief India economist at HSBC.According to S&P Global, international demand offered limited support as new export orders expanded at a broadly similar rate to July. On the labour front, services firms hired at the fastest rate in 15 months, suggesting some confidence remains. However, business confidence was below its long-run average for a second month, although firms were cautiously hopeful market conditions and demand would improve. Cost pressures ticked up modestly. Prices charged to clients rose at the fastest pace since March, with firms passing on higher operating expenses.International demand also continued to support new business. New export orders increased at a solid pace that was broadly similar to July. Survey respondents reported higher demand from clients in Australia, Brazil, Canada, Japan, Malaysia, Singapore, Sri Lanka and the United Arab Emirates. However, the increase in export sales remained below the average recorded over the past year.Published on September 3, 2026
