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Informist, Wednesday, Feb. 4, 2026

 

--India Jan services PMI 58.5 vs 58.0 in Dec 

--India Jan composite PMI 58.4 vs 57.8 in Dec 

 

NEW DELHI – India's services sector activity picked up in January with the HSBC India Services Purchasing Managers' Index rising to 58.5 from an 11-month low of 58.0 in December, S&P Global said Wednesday. The pickup in service sector activity was led by higher orders and improving business sentiment, S&P Global, which compiles the PMI, said in a release.

 

At 58.5, the final services PMI for January was lower than the flash estimate of 59.3, which was released on Jan. 23. A PMI reading of more than 50 denotes expansion in activity from the previous month, while a print below 50 indicates contraction.

 

"Robust output growth was driven by a steady influx of new orders, including increased international demand from South and Southeast Asia," Pranjul Bhandari, chief india economist at HSBC, said in the release. "Business confidence climbed to a three-month high, supported by efficiency gains, effective marketing, and the acquisition of new clients."

 

The composite PMI rose to 58.4 last month from an 11-month low of 57.8 in December. Data released Monday showed India's manufacturing PMI rose to 55.4 in January from 55.0 in December. 

 

Output growth in the services sector picked up because of demand buoyancy, new business gains, and investment in technology, S&P said. New orders rose at a quicker pace compared with December. "In addition to reporting greater client interest in their services, companies suggested that a stronger online presence helped drive sales higher," S&P said.

 

Domestic market led the rise in new business gains in January while international orders also increased. Survey participants saw new business gains from Indonesia, Kenya, Malaysia, Oman, Qatar, Sri Lanka, Thailand, and Vietnam last month. Business confidence rose to a three-month high in January, supported by efficiency gains, marketing efforts, and new client wins, S&P said.

 

As output and business picked up in January, service providers resumed hiring even as the pace of job creation was only marginal. Most firms did not hire additional staff last month, citing sufficient resources for current requirements, S&P said. 

Services firms signalled higher prices for eggs, electronic items, meat, paper, parts, and vegetables. "Overall, input costs increased at the fastest pace since last September, albeit one that was moderate and below the long-run series trend," S&P said.

 

Output charges also rose in January, with the rate of inflation at a three-month high. "Service providers reportedly sought to better balance cost rises and profitability. The overall increase was nevertheless mild in the context of historical data," S&P said.  End

 

Reported by Shubham Rana

Edited by Deepshikha Bhardwaj

 

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