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India's services PMI reaches three-month high of 55.2

By CAShorts DeskPublished Source: Mint, on the HSBC India PMI survey compiled by S&P Global

India's services PMI reaches three-month high of 55.2
Illustration (AI-generated)

India's services sector grew at its quickest pace in three months in September, with the HSBC India Services PMI, compiled by S&P Global, rising to 55.2 from 54.1 in August on stronger domestic demand and new business. Export orders, however, rose at the slowest rate in nearly three years. The composite output index climbed to 55.9.

Syllabus: GS3 · Indian Economy & Growth; Prelims · Current Affairs & IR

Why it matters

The survey points to stronger domestic demand in India's services economy, while export-order growth and hiring slowed. This combination matters for employment, business costs and the durability of growth. Easing input-cost pressures reduced the need for companies to raise selling prices, according to HSBC's economist; it does not establish that prices fell. September's improvement also coexisted with a weaker quarterly average. The figures therefore offer timely signals about business conditions rather than a direct measure of India's GDP growth.

Prelims pointers

  • PMI threshold: a reading above 50 indicates expansion; below 50 indicates contraction.
  • The HSBC India Services PMI is compiled by S&P Global and is seasonally adjusted.
  • The HSBC India Composite PMI Output Index measures combined private-sector output of manufacturing and services.
  • PMI surveys track output, new orders, export orders, employment, input costs, selling prices and business expectations.

Practise a UPSC-style question

Consider the following statements about the HSBC India Services PMI for September 2026:

1. It rose to 55.2 from 54.1 in August.

2. Services growth across the July-September quarter was the strongest since March 2022.

3. Input-cost inflation eased to a 10-month low.

Which of the statements given above is/are correct?

  1. (a) 1 and 2 only
  2. (b) 2 and 3 only
  3. (c) 1 and 3 only
  4. (d) 1, 2 and 3
Show the answer

Answer: (c) 1 and 3 only

Statement 1 is correct: the services PMI rose to 55.2 from 54.1. Statement 2 is incorrect: the July-September quarterly average was the weakest, not strongest, since March 2022. Statement 3 is correct: HSBC's economist said input-cost pressures eased to a 10-month low. Statements 1 and 3 are correct.

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