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Informist, Thursday, Sept. 3, 2026

 

--India Aug services PMI 54.1 vs 53.3 in July

--India Aug composite PMI 54.3 vs 54.3 in July

 

NEW DELHI – India's services sector activity improved in August compared with July due to a stronger upturn in business activity on the back of supportive demand conditions and rising new business inflows, S&P Global said Thursday. The HSBC India Services Purchasing Managers' Index rose to 54.1 last month from 53.3 in July.

 

At 54.1, the final services purchasing managers' index for August was lower than the flash estimate of 54.5 that was released Aug. 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.

 

Although growth of output and sales strengthened since July, rates of expansion were still among the weakest seen in over four years, S&P Global said. This was due to some firms citing subdued bookings, competition and reduced transport operations, Pranjul Bhandari, Chief India Economist at HSBC, said. 

 

The composite purchasing managers' index for August stayed at the same level as July, at 54.3, reflecting a better performance from the services sector offsetting the slowdown in the manufacturing sector. Data released Tuesday showed India's manufacturing purchasing managers' index eased to a five-year low of 52.8 in August from 53.5 in July because of softer demand conditions.

 

Growth in business activity for services firms was underpinned by new business activity, backed by stronger customer demand and marketing initiatives. However, the pace of expansion was still the second-slowest in nearly four-and-a-half years, S&P Global said, as some firms cited challenging market conditions and weaker client interest in selected services.

 

International demand also continued to support the growth in services activity. New export orders rose solidly and at a similar rate to July, with companies reporting gains from clients in markets including Australia, Brazil, Canada, Japan, Malaysia, Singapore, Sri Lanka and the UAE, according to S&P Global. Even then, the upturn in export sales remained below the average seen over the past year, it added.

 

S&P Global also said that outstanding business fell for the second month in August, albeit marginally. "Panellists that reported a reduction linked this to softer inflows of new work and the timely completion of incoming requests," it said. Employment, however, was the strongest in 15 months, with 11% of survey members reporting higher staffing levels due to efforts to support customer service, sales and digital operations.

 

Input cost inflation edged up only slightly in August and remained moderate by historical standards, compiler S&P Global also said. Companies reported higher spending on digital platforms, electricity, inputs, labour, marketing and regulatory requirements. "Price pressures picked up only modestly: input cost inflation edged up slightly, while prices charged rose at the fastest rate since March as firms passed on higher operating costs," Bhandari said. 

 

All said, the private sector's confidence about the year-ahead outlook in August was broadly unchanged from July and stayed below its long-run average. Service providers remained hopeful that market conditions and demand would improve, with technology adoption and new enquiries also supporting optimism, S&P Global said.  End

 

Reported by Priyasmita Dutta

Edited by Akul Nishant Akhoury

 

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