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Informist, Wednesday, Jun. 3, 2026

 

--India May services PMI 59.8 vs 58.8 in April 

--India May composite PMI 59.3 vs 58.2 in April 

--India May services PMI 59.8, highest in 6 months 

 

NEW DELHI – India's services sector activity in May expanded at the highest rate in six months, driven by strong demand, including for exports, S&P Global said Wednesday. Cost pressures remained historically high across the services sector but fell to the lowest in four months, S&P Global said. 

 

The HSBC India Services Purchasing Managers' Index rose to 59.8 in May, the highest since November, from 58.8 in April. The final services purchasing managers' index for May was above the flash estimate of 58.9 that was released May 21. A purchasing managers' index reading of more than 50 denotes expansion in activity from the previous month, while a print below 50 indicates contraction.

 

India's private sector activity has remained resilient in the face of the war in West Asia, after a blip in March. The composite purchasing managers' index rose to 59.3 in May, also a six-month-high, from 58.2 in April. This was sharply higher than the flash estimate of 58.1. Data released Monday showed manufacturing PMI rose to a three-month high of 55.0 in May.

 

"Strengthening demand for services such as freight, digital solutions, e-commerce, entertainment and IT (information technology) reportedly boosted new business growth during May," S&P Global, which compiles the PMI, said. "As a result, companies lifted activity to a greater extent and continued to add to payroll numbers."

 

Output growth was supported by new client additions and ongoing improvements in new business intakes, S&P Global said. New orders placed with Indian service providers hit a six-month high in May. 

 

New export business also rose, albeit to a lesser extent than total sales, S&P Global said. Services firms saw order demand from Australia, Canada, France, Germany, Hong Kong, Malaysia, the United Arab Emirates, and the UK.

 

Consumer services remained the brightest spot in the services economy, as growth of new business intakes and output for the sector outpaced other categories, S&P Global said.

 

Demand for Indian services improved despite a rise in selling prices, S&P Global said. However, the rate of increase of selling prices was the slowest in four months. "Firms that hiked their fees (only 5% of panellists) remarked on the pass-through of rising expenses to clients," S&P Global said. "Input prices across the service economy continued to increase at an above-trend pace during May. Survey participants reported having paid more for food, fuel, gas, labour and materials compared to April."

 

The rate of job creation was the second-fastest in nearly a year but slower than April, S&P Global said. However, less than 7% of surveyed firms signalled greater hiring and the vast majority indicated no change in headcounts.

 

Services firms expressed optimism about the year-ahead outlook. "They generally expect demand conditions to remain favourable and therefore support output," S&P Global said. "That said, the overall level of confidence slipped to a three-month low and was below the historical trend."  End

 

Reported by Shubham Rana

Edited by Akul Nishant Akhoury

 

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