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Time of India
3 days ago
- 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
Business Upturn
3 days ago
- Business
- Business Upturn
India's services sector growth hits 10-month high in June as demand strengthens
By Aditya Bhagchandani Published on July 3, 2025, 10:49 IST India's services sector saw robust expansion in June 2025, with business activity rising at its fastest pace in 10 months, driven by strong domestic demand and improving export orders. The HSBC India Services PMI® Business Activity Index climbed to 60.4, up from 58.8 in May, according to the latest survey by S&P Global. A reading above 50 indicates expansion. Service providers reported the sharpest rise in new orders since August 2024, supported by solid growth in both domestic and international markets, particularly from Asia, the Middle East, and the US. Notably, the pace of export growth was among the strongest since records began, though slightly lower than in previous months. Price pressures continued to ease, with input and output price inflation softening to a 10-month low. Employment in the sector grew for the 37th consecutive month, although the pace of job creation moderated from May's record levels. Finance & Insurance led sectoral growth in June, while Real Estate & Business Services lagged behind. On the outlook, service providers remained optimistic about future growth, though overall confidence dipped slightly compared to previous months. Key highlights: Business Activity Index rose to 60.4 in June (58.8 in May) New orders increased at the fastest rate in nearly a year Export orders strong, despite a slight slowdown from May Input cost inflation at a 10-month low; firms maintained pricing power Job creation continues, though at a slower pace Finance & Insurance sector remains the top performer According to Pranjul Bhandari, Chief India Economist at HSBC: 'The Services PMI business activity index was up to a ten-month high, led by a sharp rise in new domestic orders. Margins improved as the rise in input costs was below that seen for output charges.' The data reflects broad-based resilience in India's private sector, with the HSBC India Composite PMI Output Index — combining manufacturing and services — also reaching a 14-month high of 61.0 in June. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Mint
3 days ago
- Business
- Mint
India's services activity hit 10-month high in June
New Delhi: India's services sector output rose to a 10-month high in June, driven by sales, a rise in new order intakes, and an upturn in positive demand trends, according to a private survey released on Thursday. The seasonally adjusted HSBC India Services PMI Business Activity Index, compiled by S&P Global, rose to 60.4 in June, up from 58.8 in May, 58.7 in April, and 58.5 in March, and well above the 50-mark indicating expansion. The increase in export orders was among the strongest in the series's history, while price pressures eased in June, with both input cost and output charge inflation softening since the previous month, the survey said. It added that during June, new orders expanded at the fastest rate since August 2024, with services companies benefitting most from the continued strength of the domestic market, alongside a marked increase in new export business. 'The Services PMI business activity index was up to a ten-month high, led by a sharp rise in new domestic orders,' said Pranjul Bhandari, chief India economist at HSBC. 'Margins improved, as the rise in input costs was below that seen for output charges. Service providers remained optimistic about future growth, though their confidence faded a tad,' she added. India's services sector, a pillar of its economy, accounts for more than half of the country's gross domestic product. India's GDP expanded 6.5% in FY25, bolstered by a 7.4% growth in the January-March quarter. The economy grew 9.2% in FY24, driven by a 7.8% expansion in the January-March quarter, and surpassing the Reserve Bank of India's 7% forecast. RBI projects 6.5% GDP growth in FY26, driven by rural demand, public investment, and strong services exports. India's manufacturing sector activity rose to a 14-month high in June on the back of expansion in output, new orders, and job creation. The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 58.4 in June, up from 57.6 in May. It was at 58.2 in April and 58.1 in March. The HSBC India Composite PMI Output Index rose to 61 in June from 59.3 in May, indicating the fastest rate of expansion in 14 months. Growth quickened at both manufacturers and service providers. Meanwhile, demand for both goods and services strengthened notably in June, with aggregate new business rising at the fastest pace since August 2024, driven by a record surge in international sales, the survey said. 'However, despite an uptick in job creation among manufacturers, employment growth in the private sector softened,' it said. 'This reflected a slowdown among service providers. The overall rate of expansion was nevertheless historically elevated,' it added.
The Print
04-06-2025
- Business
- The Print
Indian services growth broadly steadied in May amid healthy demand conditions
In the Purchasing Managers' Index (PMI) parlance, a print above 50 means expansion, while a score below 50 denotes contraction. The seasonally adjusted HSBC India Services PMI Business Activity Index was at 58.8 in May, marginally up from April's 58.7 and signalled another sharp rate of expansion. New Delhi, Jun 4 (PTI) The Indian services growth broadly steadied in May and was underpinned by healthy demand conditions, new client wins and greater staffing capacity, a monthly report said on Wednesday. 'India registered a 58.8 services PMI in May 2025, broadly in line with the steady readings from recent months. Strong international demand continued to fuel services activity, as evidenced by the new export business index's uptick from April,' said Pranjul Bhandari, Chief India Economist at HSBC. As per the survey, new orders rose at a sharp pace largely driven by advertising, demand strength and repeat orders from existing clients. Companies also observed a near-record improvement in international demand for their services during May with faster increases in new export orders recorded in Asia, Europe and North America in particular. 'To keep up with swelling demand, India's service providers heavily increased staff recruitment. Indeed, the employment index rose to the highest reading ever recorded by this survey,' Bhandari said. Almost 16 per cent of panel members reported higher payroll numbers, while 1 per cent indicated a fall. 'The resulting overall rate of job creation was the strongest in the history of the survey,' the survey said. The increase in workforce numbers, coupled with overtime payments, added to firms' cost burdens. Some companies also cited greater outlays on cooking oil, material and meat. Meanwhile, price gauges showed an intensification of input cost and output charge inflation, with rates of increase edging above their historical averages in each case. There was a recovery in business sentiment during May and the upgraded forecasts stemmed from expectations that greater staffing capacity, expanded clientele and marketing initiatives will support activity growth in the year ahead. Meanwhile, the HSBC India Composite PMI Output Index came in at 59.3 in May, down only marginally from 59.7 in April, signalling a further sharp upturn in aggregate activity. The downward movement in the headline index reflected softer growth of factory production, as services activity rose at a quicker pace. 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. The HSBC India Services PMI is compiled by S&P Global from responses to questionnaires sent to a panel of around 400 service sector companies. The sectors covered include consumer (excluding retail), transport, information, communication, finance, insurance, real estate and business services. PTI DRR ANU ANU This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Business Standard
04-06-2025
- Business
- Business Standard
India private sector growth loses mild momentum in May
Indian services growth broadly steadied in May, with rates of expansion in new business and activity little-changed from those seen in the prior three months. A key area of strength was exports, with survey participants reporting one of the strongest improvements in international demand in 19-and-a-half years of data collection. The latest results also revealed a fresh record-rise in employment, as firms continued to adjust operating capacities in line with ongoing increases in sales. Price gauges showed an intensification of input cost and output charge inflation, with rates of increase edging above their historical averages in each case. Registering 58.8 in May, the seasonally adjusted HSBC India Services PMI Business Activity Index was broadly in line April's reading of 58.7 and therefore signalled another sharp rate of expansion. Growth was reportedly underpinned by healthy demand conditions, new client wins and greater staffing capacity. Similar to the trend for output, new orders rose at a sharp pace that was largely aligned with those registered from February to April. The HSBC India Composite PMI Output Index came at 59.3 in May, down only marginally from 59.7 in April and therefore signalling a further sharp upturn in aggregate activity. The downward movement in the headline index reflected softer growth of factory production, as services activity rose at a quicker pace. Regarding new business, there were slightly weaker increases at manufacturing companies and their services counterparts. At the composite level, the pace of growth remained sharp despite easing to a three-month low. 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. Input cost inflation across the private sector accelerated to a six-month high, with the sharper upturn registered in the services economy. Selling prices also increased at the fastest pace since November 2024, though here the quickest rise was in manufacturing.
