India Services Growth Strongest In Over 15 Years

(RTTNews) - India's service sector growth accelerated to more than a 15-year high in August on the back of surging new orders, final data compiled by S&P Global showed on Wednesday.

The seasonally adjusted HSBC India Services PMI rose to 62.9 in August from 60.5 in July. The flash score was 65.6. A score above 50.0 indicates expansion.

The latest upturn was driven by demand buoyancy, efficiency gains, and greater inflows of new business, the survey said.

New orders grew at the quickest pace in over fifteen years, and the rate of expansion in international sales was the third-strongest in the survey history amid greater demand from clients in Asia, Europe, the Middle East, and the US.

Employment growth remained moderate in August despite accelerating since July, and outstanding business volumes increased at the weakest pace in close to a year.

On the price front, input price inflation accelerated to the highest since November 2024 due to higher labor costs. As a result, selling price inflation rose to the steepest in over thirteen years.

Looking ahead, companies remained confident about expected business activity over the next twelve months, buoyed by budget allocation for advertising and forecasts that demand trends will remain favorable.

The composite output index climbed to 63.2 in August from 61.1 in July, indicating the sharpest pace of expansion in the Indian private sector activity in over seventeen years.