India Services PMI Hits 4-Month High of 55.8 in October

India's services sector activity accelerated to its fastest expansion pace in four months in October 2026, with the HSBC India Services Purchasing Managers' Index (PMI) climbing to 55.8 from 55.2 in September, according to data compiled by S&P Global. The seasonally adjusted index maintained its position comfortably above the 50-point mark separating growth from contraction, driven by robust domestic demand, new client acquisitions, and effective commercial marketing campaigns. The upturn in new business volumes was the sharpest recorded since June, with all four monitored sub-sectors reporting faster growth in output—led primarily by finance and insurance. Reflecting broader economic momentum, the HSBC India Composite PMI Output Index also rose to a four-month high of 56.2 in October, up from 55.9 in September. On the cost front, input price inflation moderated to its lowest level in over six years, registering its slowest rate of increase since August 2020 and allowing the rate of price increases charged to customers to soften to its weakest point since June. However, international sales momentum showed signs of cooling, with growth in new export orders slowing to its lowest pace since February 2023. At the same time, job creation across the services sector moderated to its slowest rate since June. Consequently, while current operational activity and domestic demand remain resilient, service providers maintained a stance of cautious optimism regarding business expectations over the next 12-month horizon. HDFCBANK