HSBC India Services PMI Rises To A 10-Month High Of 60.4 In June
The HSBC India Composite PMI Output Index rose from 59.3 in May to 61.0, indicating the fastest rate of expansion in 14 months.
The seasonally adjusted HSBC India Services PMI Business Activity Index rose from 58.8 in May to a ten-month high of 60.4 in June. Monitored companies linked the upturn to positive demand trends and ongoing improvements in sales.
June data highlighted another substantial increase in Indian private sector activity. The HSBC India Composite PMI Output Index rose from 59.3 in May to 61.0, indicating the fastest rate of expansion in 14 months.
New orders expanded at the quickest rate since August 2024. Services companies benefited most from the continued strength of the domestic market, alongside a marked increase in new export business. Overseas demand particularly improved from the Asian, Middle Eastern and US markets, according to panel members. The level of incoming new export orders rose at the slowest pace in three months.
The ongoing expansion of the Indian service sector had a positive impact on recruitment. Employment rose for the thirty-seventh consecutive month in June, with the rate of job growth outpacing its long-run average despite slowing from May's record.
The rate of input cost inflation across India's service economy eased to a ten-month low in June, and was below its long-run average. Despite easing from May, the rate of charge inflation remained above the series trend. Outstanding business expanded at a slight rate that was nevertheless faster than in May.
Optimism regarding the outlook for output levels in one-year time was sustained, with 18% of service providers forecasting growth. This proportion of upbeat firms was, however, the lowest since mid-2022. Hence, the overall level of confidence fell and was below its long-run average.
