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NDTV
03-07-2025
- Business
- NDTV
India's Services Sector Activity Surges To 10-Month High In June: Report
New Delhi: The growth in India's services sector activity surged to a 10-month high in June, driven by robust demand in both the domestic and export markets, according to an HSBC survey released on Thursday. The seasonally adjusted HSBC India Services PMI Business Activity Index, compiled by S&P Global, rose from 58.8 in May to 60.4 in June. The PMI threshold of 50.0 is neutral mark that separates growth from contraction on the index. 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 survey states. The ongoing expansion of the Indian services 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, although it was lower than the record figure achieved in May. 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. According to the survey, optimism regarding the outlook for output levels in one-year time was sustained, with 18 per cent 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. The HSBC India Composite PMI, which combines services and manufacturing activity, rose to 61.0 in June from 59.3, marking the fastest expansion in 14 months. The manufacturing PMI data released this week showed manufacturing activity growth accelerated in June, in tune with the strong services sector performance.
The Hindu
03-07-2025
- Business
- The Hindu
Indian services sector growth touches 10-month high in June on sharp upturn in new business: PMI
The Indian services sector growth touched a ten-month high in June aided by robust expansion in international sales and job creation, amid positive demand trends and ongoing improvement in sales, a monthly survey said on Thursday (July 3, 2025). The seasonally adjusted HSBC India Services PMI Business Activity Index rose from 58.8 in May to 60.4 in June, driven by sharp upturn in new business orders. In the Purchasing Managers' Index (PMI) parlance, a print above 50 means expansion, while a score below 50 denotes 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. Margins improved, as the rise in input costs was below that seen for output charges," Pranjul Bhandari, Chief India Economist at HSBC, said. 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 U.S. markets, according to panel members. The ongoing expansion of the Indian service sector had a positive impact on recruitment. Employment rose for the 37th consecutive month in June, with the rate of job growth outpacing its long-run average despite slowing from May's record. On the price front, the survey said, cost pressures were most intense in the consumer services category, while the fastest upturn in output charges was noted in the finance and insurance segment. As per the survey, optimism regarding the outlook for output levels in one year time was sustained, with 18 per cent 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. "Service providers remained optimistic about future growth, though their confidence faded a tad," Bhandari added. Meanwhile, the HSBC India Composite PMI Output Index rose from 59.3 in May to 61 in June, indicating the fastest rate of expansion in 14 months. Composite PMI indices are weighted averages of comparable manufacturing and services PMI indices. Weights reflect the relative size of the manufacturing and service sectors according to official GDP data. As per the survey, prices charged by private sector companies rose at the slowest pace in three months at the end of the first fiscal quarter. Concurrently, cost burdens increased at the weakest rate since August 2024. For both indicators, slowdowns were broad-based across the manufacturing and service economies. 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.
Deccan Herald
03-07-2025
- Business
- Deccan Herald
Indian services sector growth touches 10-month high in June on sharp upturn in new business: PMI
The seasonally adjusted HSBC India Services PMI Business Activity Index rose from 58.8 in May to 60.4 in June, driven by sharp upturn in new business orders.
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Business Standard
03-07-2025
- Business
- Business Standard
June Services PMI touches 10-month high at 60.4 on sharp upturn in new biz
The seasonally adjusted HSBC India Services PMI Business Activity Index rose from 58.8 in May to 60.4 in June, driven by sharp upturn in new business orders Press Trust of India New Delhi The Indian services sector growth touched a ten-month high in June aided by robust expansion in international sales and job creation, amid positive demand trends and ongoing improvement in sales, a monthly survey said on Thursday. The seasonally adjusted HSBC India Services PMI Business Activity Index rose from 58.8 in May to 60.4 in June, driven by sharp upturn in new business orders. In the Purchasing Managers' Index (PMI) parlance, a print above 50 means expansion, while a score below 50 denotes 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. Margins improved, as the rise in input costs was below that seen for output charges," Pranjul Bhandari, Chief India Economist at HSBC, said. 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 ongoing expansion of the Indian service sector had a positive impact on recruitment. Employment rose for the 37th consecutive month in June, with the rate of job growth outpacing its long-run average despite slowing from May's record. On the price front, the survey said, cost pressures were most intense in the consumer services category, while the fastest upturn in output charges was noted in the finance and insurance segment. As per the survey, optimism regarding the outlook for output levels in one year time was sustained, with 18 per cent 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. "Service providers remained optimistic about future growth, though their confidence faded a tad," Bhandari added. Meanwhile, the HSBC India Composite PMI Output Index rose from 59.3 in May to 61 in June, indicating the fastest rate of expansion in 14 months. Composite PMI indices are weighted averages of comparable manufacturing and services PMI indices. Weights reflect the relative size of the manufacturing and service sectors according to official GDP data. As per the survey, prices charged by private sector companies rose at the slowest pace in three months at the end of the first fiscal quarter. Concurrently, cost burdens increased at the weakest rate since August 2024. For both indicators, slowdowns were broad-based across the manufacturing and service economies. 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.
Mint
03-07-2025
- 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.
