June Services Purchasing Managers' Index (PMI) touches 10-month high at 60.4 on sharp upturn in new business.

The HSBC India Services Purchasing Managers' Index (PMI) indicates that India's services sector experienced its greatest rate of expansion in ten months in June 2025, fueled by robust domestic demand, increased foreign sales, and ongoing job creation. The seasonally adjusted Services PMI Business Activity Index increased from 58.8 in May 2025 to 60.4 in June 2025, suggesting strong growth, as a reading over 50 indicates expansion. A significant increase in new domestic orders, the highest since August 2024, was the main driver of the increase, while export orders also increased, notably from the Middle East, Asia, and the United States (US). In contrast to output prices, input expenses increased at a slower rate, which helped to improve profit margins. Despite a slight slowdown from its peak in May, employment in the services sector increased for the 37th straight month, and the rate of hiring was higher than its long-run average. In terms of pricing, the finance and insurance sector saw the greatest rise in output prices, whereas consumer services were under the greatest cost pressures. The proportion of businesses that anticipated an increase in output decreased to its lowest level since the middle of 2022, even though there was generally optimism about growth for the coming year. The HSBC India Composite PMI Output Index, which covers both manufacturing and services, increased from 59.3 in May to 61 in June, representing the fastest growth in 14 months. Cost pressures in the private sector lessened, and price increases slowed to their lowest level since August 2024. The index, which is published by Standard and Poor's (S&P) Global, is based on data from over 400 service companies and represents the increasing resilience and maturity of India's service-driven economy.