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India’s services growth eases in September, PMI at 60.9

India’s services sector activity remained robust in September, with the HSBC India Services Purchasing Managers’ Index (PMI) registering 60.9, according to data released by S&P Global on Monday.

Pranjul Bhandari, Chief India Economist at HSBC, said while the reading was slightly lower than August’s recent high, “most trackers moderated, but nothing in the survey suggested a big loss in growth momentum in services.” She noted that the Future Activity Index rose to its highest level since March, reflecting strengthening optimism among services companies about business prospects.

The PMI indicated continued stability in India’s services economy, underpinned by firm demand, new business activity, and a positive outlook among companies. The sector remains a key contributor to India’s overall economic performance this year.

Meanwhile, India’s manufacturing sector maintained its growth momentum in September, albeit at a slower pace. The HSBC India Manufacturing PMI stood at 57.7, down from 59.3 in August, marking the weakest improvement in sector health since May. However, the figure remains well above the neutral 50 level that separates expansion from contraction.

The report highlighted that manufacturing output continued to expand on the back of steady demand, though firms reported a mild slowdown in new orders and purchasing activity. Employment levels and input inventories remained stable, reflecting confidence in the business outlook for the coming months.

Analysts noted that while both the manufacturing and services sectors moderated slightly in September, India’s overall economic growth momentum remains firm, supported by steady domestic demand, policy stability, and improving business confidence.

-IANS

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