Key facts
- India's services sector activity expanded slightly in August, with the HSBC India Services PMI rising to 54.1.
- Despite the acceleration, new business growth in India's services sector remained subdued, near a four-year low.
- Firms in India's services sector increased hiring at the fastest pace in 15 months.
- International demand provided limited support for India's services sector.
- Input cost pressures ticked up modestly in India, with prices charged to clients rising at the fastest pace since March.
- India's Composite PMI remained unchanged at 54.3, as manufacturing growth declined.
India's dominant services sector saw a slight acceleration in activity in August, with the HSBC India Services Purchasing Managers' Index (PMI) rising to 54.1 from 53.3 in July. However, persistently subdued new business growth kept overall activity near its weakest level in more than four years. Firms ramped up hiring at the fastest pace in 15 months, indicating some confidence, but business confidence remained below its long-run average. International demand offered limited support, with new export orders expanding at a similar rate to the previous month. Cost pressures increased modestly, with firms passing on higher operating expenses through faster price hikes. India's Composite PMI, which includes manufacturing, held steady at 54.3, as a slowdown in manufacturing growth offset the quicker expansion in services.