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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
Time of India
06-05-2025
- Business
- Time of India
India's April services growth edges up; confidence falls to two-year low, PMI shows
India's services sector experienced a slight growth in April, with the HSBC India Services PMI increasing to 58.7. New business volumes rose sharply, and international demand saw its fastest expansion since July 2024. Despite this growth, business sentiment weakened to its lowest level since mid-2023 due to increasing competition. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads India's services sector growth picked up slightly in April after March's slowdown as demand expanded robustly, although optimism was its weakest in nearly two years, a survey showed on HSBC India Services Purchasing Managers' Index (PMI), compiled by S&P Global, rose marginally to 58.7 in April from 58.5 in March, lower than a preliminary estimate of readings above 50.0 indicate growth in activity, while those below that level point to a business volumes - a key gauge of demand - increased sharply in April, as it did in the previous two months. International demand strengthened considerably, with export orders expanding at the fastest rate since July and insurance emerged as the strongest-performing sub-sector, recording the highest growth rates for both output and new meet rising client demand, service providers boosted their workforce numbers for a 35th straight month. The rate of job creation accelerated from March and exceeded the long-term average."New export orders gained momentum after taking a breather in March, accelerating at its fastest pace since July 2024. Margins improved as cost pressures eased and prices charged rose at a faster pace," said Pranjul Bhandari, chief India economist at the price front, input cost inflation eased to its lowest in six months. Companies took advantage of strong demand conditions to pass on costs, raising their selling prices at a quicker pace than in price pressures have given the Reserve Bank of India room to lower its key repo rate by 50 basis points this year with a few more cuts expected in the next few business sentiment fell for a fifth consecutive month, and is now at its lowest level since mid-2023, with increasing competition dampening HSBC India Composite PMI , which includes both manufacturing and services, rose to 59.7 in April from 59.5 in March, marking the strongest expansion in private sector activity since August.
