HSBC‘s India Services Purchasing Managers’ Index (PMI) rose to 55.2 from August’s 54.1, but was below a preliminary estimate of 55.8. A reading above 50.0 shows growth.
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September’s improvement failed to prevent the July-September average from falling to its lowest since the quarter ended March 2022, painting a less upbeat picture as hiring softened and export momentum weakened. New business – a key gauge of demand – increased at its quickest pace since June. But international demand was less buoyant with export order growth slowing to its weakest in nearly three years suggesting domestic customers provided a firmer foundation for September’s acceleration.
Employment growth eased from August.
Input cost inflation was its lowest in 10 months while fees charged to customers rose at their slowest pace since June.
Business confidence improved to a three-month high but remained subdued historically. Only around 16% of firms expected activity to increase over the next year.
The services upturn, alongside manufacturing growth accelerating to its fastest since February, lifted the India Composite PMI to a three-month high of 55.9 in September from August’s 54.3. Still, its quarterly average was the weakest since January-March 2022, tempering the signs of recovery.