India’s services sector continued to show strong performance in September, with the HSBC India Services Purchasing Managers’ Index (PMI) recording 60.9, according to S&P Global data released on Monday.
Pranjul Bhandari, Chief India Economist at HSBC, noted that while the reading was slightly below August’s recent peak, “most trackers moderated, but nothing in the survey suggested a big loss in growth momentum in services.” She added that the Future Activity Index reached its highest level since March, signaling rising optimism among services firms about business prospects.
The PMI reflected continued stability in India’s services economy, supported by solid demand, new business growth, and a positive outlook among companies. The sector remains a major driver of India’s overall economic performance this year.
Meanwhile, India’s manufacturing sector also sustained growth in September, though at a slower pace. The HSBC India Manufacturing PMI came in at 57.7, down from 59.3 in August, marking the softest improvement since May. Despite the slowdown, the figure remains well above the neutral 50 mark that separates expansion from contraction.
The report highlighted that manufacturing output continued to rise on the back of steady demand, although firms reported a mild slowdown in new orders and purchasing activity. Employment and input inventories remained stable, reflecting continued confidence in the business outlook for the coming months.
Analysts observed that while both manufacturing and services saw slight moderation in September, India’s overall economic momentum remains solid, supported by steady domestic demand, policy stability, and improving business confidence.
