More Stories

Informist, Thursday, Jul. 3, 2025

 

--India Jun services PMI 60.4 vs 58.8 in May 

--India Jun composite PMI 61.0 vs 59.3 in May 

 

NEW DELHI – India's services sector activity steadily picked up pace, with the HSBC India Services Purchasing Managers' Index edging up to a 10-month high of 60.4 in June from 58.8 in May, compiler S&P Global said Thursday. Meanwhile, composite PMI rose to a 14-month high of 61.0 in June from a three-month low of 59.3 in May.

 

The final services PMI print of 60.4 for May is marginally lower than the flash estimate of 60.7 released on Jun. 23, while the composite index is same as the preliminary figure of 61.0. A PMI reading of more than 50 denotes expansion in activity, while a print below 50 indicates contraction.

 

The services sector PMI was up primarily due to a sharp rise in new domestic orders. "New export orders also expanded, albeit at a softer pace. Margins improved, as the rise in input costs was below that seen for output charges," Pranjul Bhandari, chief India economist at HSBC, said. "Service providers remained optimistic about future growth, though their confidence faded a tad."

 

According to S&P Global, output and new order intakes rose at the fastest pace since August 2024, aided by robust expansion in international sales and job creation. "Despite slowing to the weakest in three months, the increase in export orders was among the strongest in the series history," it said. 

 

Overseas demand particularly improved from the Asian, Middle Eastern and US markets. Sectorally, expansion in output and new orders remained broad-based during June with finance and insurance topping the growth rankings again. For both measures, the slowest expansions were in real estate and business services, S&P Global said.

 

The expansion in services activity was also aided by softening of input cost inflation easing to a 10-month low in June, which was below its long-run average. Where expenses increased, panel members commonly cited greater staff salaries and wages. Despite easing from May, the rate of charge inflation remained above the series trend, they added. 

 

Business optimism regarding the outlook for output levels in one year was sustained, with 18% of service providers forecasting growth. This proportion of upbeat firms was, however, the lowest since mid-2022. "Hence, the overall level of confidence fell and was below its long-run average," S&P Global said.  End

 

Reported by Priyasmita Dutta

Edited by Tanima Banerjee

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.