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Informist, Tuesday, Aug. 5, 2025

 

--India Jul services PMI 60.5 vs 60.4 in Jun

--India Jul composite PMI 61.1 vs 61.0 in Jun

MUMBAI - India's services sector activity maintained its strong momentum in July, with the HSBC India Services Purchasing Managers' Index rising to an 11-month high of 60.5, but it remained little changed from 60.4 in June, S&P Global, which compiles the PMI, said Tuesday. Price pressures increased in July as companies reported an increase in expenses, S&P Global said.

 

The composite PMI inched up to 61.1 in July, a 15-month high, from 61.0 in June. Data released Friday showed India's manufacturing PMI at a 16-month high of 59.1 in July.

 

The final services PMI print of 60.5 for July is higher than the flash estimate of 59.8 released on Jul. 24, while the composite index is also above the preliminary figure of 60.7. A PMI reading of more than 50 denotes expansion in activity from the previous month, while a print below 50 indicates contraction. 

 

"Ongoing improvements in demand for Indian services continued to underpin growth of total new orders, international sales and output," S&P Global said. "Sustained increases in new business intakes were identified by survey members as the main aspect behind output growth."

 

Indian service sector firms saw an increase in international demand. Firms secured new work from Asia, Canada, Europe, the United Arab Emirates, and the US. The rate of expansion in external sales was sharp and the second-fastest in a year, behind May, S&P Global said.

 

Finance and insurance was the best performing sector in terms of both new orders and business activity. Real estate and business services saw the slowest increases in new orders and activity, S&P Global said.

 

Even as new orders and activity increased, service providers slowed down hiring. July's increase in employment was the slowest in 15 months and less than 2% of companies took on additional staff, S&P Global said.

 

Service providers were optimistic about the year-ahead outlook. "Among the factors supporting business confidence were efficiency gains, marketing, tech innovation and a growing online presence," S&P Global said.

 

On the price front, both input and output prices rose slightly quicker than in June. Firms spent more on food, freight, and labour costs. Prices charged by services firms rose quicker than their costs, S&P Global said.

 

The increase in service sector activity should provide comfort to the Reserve Bank of India's Monetary Policy Committee, which is expected to leave the repo rate unchanged at 5.50% on Wednesday, even as some economists expect a 25-basis-point rate cut.  End

 

Reported by Shubham Rana

Edited by Deepshikha Bhardwaj

 

 

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