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December sees mild cooling in India’s services sector activity
Jan-06-2026

India services sector growth eased in the month of December but was well above the neutral mark of 50.0 to signal another substantial upturn in output. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index slowed down to 58.0 in December from 59.8 in November. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also eased to 57.8 in December as against 59.7 in November.

The survey report also noted that rates of expansion in incoming new work and output eased to the slowest in 11 months, with companies refraining from recruiting additional staff. One factor that prevented firms from recruiting additional staff was a lack of pressure on their operating capacities. Outstanding business volumes were broadly stable in December, as was generally the case in both October and November.

Further, Indian services companies were confident of a rise in business activity in 2026, but the overall level of positive sentiment fell for the third straight month to its lowest in close to three-and-a-half years. On the price front, there were quicker increases in input costs and output charges than those registered in the previous month, though rates of inflation remained below their respective long-run averages.

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