India’s services sector continued its expansion in June, as indicated by the services PMI reaching 57.4, despite softer domestic demand, according to the HSBC India Services PMI data released on Friday.
The services PMI reading, well above the neutral 50 mark, reflects sustained growth in business activity, supported by factors such as competitive pricing, stronger e-commerce demand, higher customer bookings, and improved local tourism.
While output growth moderated, there was a slowdown in new business expansion, the slowest in over two-and-a-half years, attributed to challenging market conditions and reduced client interest, as per the PMI data.
Companies reported that overseas demand remained strong, with new export orders growing at the fastest pace in three months, driven by increased demand from countries like Australia, Canada, Germany, the UAE, and the US.
Hiring activity remained stable in June, with firms indicating sufficient staffing levels following robust recruitment in April and May, while business confidence slightly moderated, although growth expectations for the upcoming year persisted.
The data also highlighted a decrease in inflationary pressures, with input cost inflation at a five-month low and output price inflation moderating to its weakest level since November 2025, while the broader private sector continued to show expansion.
The HSBC India Composite PMI Output Index for June stood at 57.1, signaling ongoing growth in both manufacturing and services sectors, according to the data.
