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India’s services sector strengthens in September on improving demand conditions
Oct-06-2026

India’s services sector expanded further in the month of September, as demand conditions remained supportive and new business rose at fastest pace since June. Besides, improving sales performance lifted growth of business activity to a three-month high, while input-cost pressures on service providers eased to a 10-month low, reducing the need to raise selling prices.

According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index rose to 55.2 in September from 54.1 in August. New orders increased sharply in September and at the fastest rate in three months. Finance & insurance and consumer services recorded the strongest expansions in both activity and sales.

International demand for Indian services improved, but the growth of new export business eased to a moderate pace that was the slowest in close to three years. Besides, employment rose but at a moderate rate and lost some momentum from August, with the slowdown largely attributable to softer recruitment across the real estate and business services firms.

The survey report further noted that outstanding business volumes increased after falling in the previous two months, however, the rate of accumulation was only marginal. Meanwhile, Indian services companies remained optimistic about the year ahead, supported by resilient demand and rising customer enquiries.

Going ahead, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also increased from 54.3 in August to 55.9 in September, indicating the strongest upturn in private sector output since June. Still, the average for the second fiscal quarter was the lowest since the three months to March 2022.


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