India Services PMI Rises To 55.2 In September On Stronger Domestic Demand

(MENAFN- KNN India) New Delhi, Oct 6 (KNN) India's services sector expanded at a faster pace in September, supported by stronger demand for financial, consumer and digital services, although the sector's quarterly growth remained the weakest in over four years, a survey showed.

The HSBC India Services PMI rose to 55.2 in September from 54.1 in August, though it was below the preliminary estimate of 55.8. A reading above 50 indicates expansion.

New business growth accelerated to its fastest pace since June, providing stronger support to overall activity.

However, international demand weakened, with export order growth slowing to its lowest level in nearly three years, indicating that domestic demand was the main driver of September's improvement. Employment growth also eased from August.

Input Cost Inflation Eases

Input cost inflation fell to a 10-month low, while the pace of increase in prices charged to customers slowed to its weakest since June.

Business confidence improved to a three-month high, although it remained subdued by historical standards. Only around 16 per cent of firms expected activity to increase over the next year.

Meanwhile, stronger manufacturing activity, alongside the improvement in services, lifted the India Composite PMI to 55.9 in September from 54.3 in August, marking a three-month high.

Despite the monthly improvement, the composite PMI's July-September average was the weakest since the quarter ended March 2022, indicating that overall private-sector growth remained relatively subdued during the quarter.

(KNN Bureau)

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