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

NEW DELHI : India’s services sector recorded its fastest growth in 10 months during June 2025, driven by strong domestic demand, rising international sales, and continued job creation, according to the HSBC India Services Purchasing Managers’ Index (PMI). The seasonally adjusted Services PMI Business Activity Index rose from 58.8 in May 2025 to 60.4 in June 2025, indicating robust expansion—a score above 50 signals growth. The surge was led by a sharp rise in new domestic orders, the fastest since August 2024, while export orders also improved, particularly from Asia, the Middle East, and the United States (US). Input costs rose at a slower pace than output prices, supporting better margins.

Employment in the services sector grew for the 37th consecutive month, with the rate of hiring outpacing its long-run average, despite moderating slightly from May’s peak. On the pricing front, consumer services faced the most intense cost pressures, while the highest increase in output charges was seen in the finance and insurance segment. Despite overall optimism for growth over the next year, the share of firms expecting output to rise dropped to its lowest level since mid-2022. The HSBC India Composite PMI Output Index, which includes both manufacturing and services, rose from 59.3 in May to 61 in June, the fastest expansion in 14 months. Price increases across the private sector eased, with cost burdens rising at their weakest rate since August 2024. The index, compiled by Standard and Poor’s (S&P) Global, is based on responses from about 400 services firms and reflects the growing resilience and maturity of India’s service-driven economy.