India’s services sector activity eased in the month of September, as new business, international sales and output all rose at the slowest rates since late-2023. According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index fell to 57.7 in September from 60.9 in August. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also eased to 58.3 in September as against 60.7 in August.
The survey report noted that new business intakes expanded sharply at the end of the second fiscal quarter, but the pace of growth retreated to a ten-month low. The solid increase in services employment seen since May was extended to September. Service providers reported the recruitment of full- and part-time workers, with both permanent and temporary contracts being offered.
On the price front, fierce competition somewhat restricted charge inflation across India's service economy in September. Output prices still rose, but did so to the smallest degree in over two-and-a-half years. Cost pressures were more pronounced in the Consumer Services segment, but it was in Finance & Insurance that the fastest rise in selling prices was recorded. As per the report, there was a general absence of capacity pressure at service providers in India. This was signaled by the seasonally adjusted Outstanding Business Index registering broadly in line with the no-change mark of 50.0.