PMI services at 11-mth high in July
HSBC India Services PMI edges up to 60.5 in July from 60.4 in June
New Delhi: The Indian services sector growth touched an 11 month high in July, supported by a pickup in new exports orders and sharp rise in overall sales, a monthly survey said on Tuesday.
The seasonally adjusted HSBC India Services PMI Business Activity Index was at 60.5 in July, little-changed from 60.4 in June, and the rate of expansion was the best seen since August 2024. In the Purchasing Managers’ Index (PMI) parlance, a print above 50 means expansion, while a score below 50 denotes contraction.
“At 60.5, the services PMI indicated a strong growth momentum, led by a pick-up in new export orders,” said Pranjul Bhandari, Chief India Economist at HSBC.
Sustained increases in new business intakes were the main aspect behind output growth, the survey said, adding that Indian service providers also welcomed a stronger improvement in international demand for their services.
“They reportedly secured new work from Asia, Canada, Europe, the UAE and the US,” it said. Going ahead, service providers were on average optimistic about their expectations for output in the year ahead. Among the factors supporting business confidence were efficiency gains, marketing, tech innovation and a growing online presence, they said. On the price front, input costs and output charges rose at faster rates than in June.
“The solid rise in output prices reflected greater cost burdens and demand strength,” the survey said.
“On the price front, both input and output prices rose a tad faster than in June, but this could change going forward as indicated by the recent CPI and WPI prints,” Bhandari said. The Consumer Price Index (CPI) based retail inflation has remained below 4 per cent since February. It was at 2.1 per cent in June. The wholesale price inflation (WPI) turned negative after a gap of 19 months, declining 0.13 per cent in June.
Meanwhile, RBI Governor Sanjay Malhotra-headed rate-setting panel on Monday started the three-day deliberations to decide the next bi-monthly monetary policy amid expectations of a pause in the rate easing cycle.
