Business EconomyPosted at: Nov 4 2026 6:41PM


India services activity grows at fastest pace in 4 months; PMI rises to 55.8

New Delhi, Nov 4 (UNI) India's services sector witnessed a stronger expansion in October, with business activity growing at its fastest pace in four months, supported by robust domestic demand and an increase in new customer orders. At the same time, easing input costs provided some relief to service providers, with inflationary pressures declining to their lowest level in over six years.
According to the HSBC India Services Purchasing Managers' Index (PMI), the seasonally adjusted business activity index climbed to 55.8 in October from 55.2 in September. A reading above 50 indicates expansion, while a score below that level signals contraction. The latest reading marked the strongest growth in services activity since June.
The improvement was largely driven by an increase in domestic orders, with businesses reporting their fastest growth in sales in four months. Companies attributed the rise to favourable market conditions, the addition of new customers and promotional campaigns that helped generate fresh demand.
Domestic consumption continued to be the primary engine of growth, with all four broad segments covered by the survey reporting an improvement in business activity and new orders. Finance and Insurance emerged as the strongest-performing segment, recording the highest expansion in both output and new business. Real Estate and Business Services, meanwhile, saw comparatively slower growth.
However, the recovery remained uneven across domestic and overseas markets. While new export business continued to rise, the pace of growth was marginal and the weakest in nearly four years. International sales also recorded their slowest expansion since February 2023, suggesting that overseas demand remained subdued despite the improvement in domestic activity.
A key positive development in the October survey was the moderation in cost pressures. Input prices across the services industry increased at their slowest pace since August 2020, offering businesses some relief from rising operating expenses.
Among the surveyed segments, Consumer Services continued to face the strongest cost pressures, with input price inflation accelerating compared with September. Finance and Insurance reported the mildest increase in input costs.
Despite stronger business activity, companies remained cautious about expanding their workforce. Employment growth slowed to a four-month low, with the pace of hiring remaining marginal. Job creation was also among the weakest recorded during the ongoing 10-month period of employment expansion.
The survey also indicated that businesses were gradually clearing pending work. Outstanding workloads declined for the third time in four months, although the pace of reduction remained moderate.
The October data, therefore, points to sustained momentum in India's services economy, with domestic demand providing support even as export growth and employment generation remain relatively weak. Easing input cost inflation, meanwhile, offers a favourable sign for service providers amid continuing global economic uncertainties.UNI VK AAB
Tags: #India services activity grows at fastest pace in 4 months; PMI rises to 55.8
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