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BENGALURU, Oct 6 (Reuters) – India’s dominant services industry expanded at its fastest pace in three months in September on stronger demand for financial, consumer and digital services, a survey showed on Tuesday, though quarterly growth was the weakest in more than four years.
- HSBC’s India Services Purchasing Managers’ Index (PMI) rose to 55.2 from August’s 54.1, but was below a preliminary estimate of 55.8. A reading above 50.0 shows growth.
- September’s improvement failed to prevent the July-September average from falling to its lowest since the quarter ended March 2022, painting a less upbeat picture as hiring softened and export momentum weakened.
- New business – a key gauge of demand – increased at its quickest pace since June. But international demand was less buoyant with export order growth slowing to its weakest in nearly three years suggesting domestic customers provided a firmer foundation for September’s acceleration.
- Employment growth eased from August.
- Input cost inflation was its lowest in 10 months while fees charged to customers rose at their slowest pace since June.
- Business confidence improved to a three-month high but remained subdued historically. Only around 16% of firms expected activity to increase over the next year.
- The services upturn, alongside manufacturing growth accelerating to its fastest since February, lifted the India Composite PMI to a three-month high of 55.9 in September from August’s 54.3. Still, its quarterly average was the weakest since January-March 2022, tempering the signs of recovery.
Reporting by Anant Chandak; Editing by Jacqueline Wong
