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India’s services sector hits 10-month high of 60.4 in June
Jul-03-2025

India’s services sector gathered more pace in June to touch a ten-month high, as output and new order intakes rose at the fastest rates since August 2024, aided by another robust expansion in international sales and job creation. Despite slowing to the weakest in three months, the increase in export orders was among the strongest in the series history.  According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index grew to 60.4 in June from 58.8 in May. The HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also surged to 61.0 in June as against 59.3 in May.

The report further noted that expansions in output and new orders remained broad-based during June. Once again, Finance & Insurance topped the growth rankings. For both measures, the slowest expansions were in Real Estate & Business Services. The ongoing expansion of the Indian service sector had a positive impact on recruitment. Employment rose for the thirty-seventh consecutive month in June, with the rate of job growth outpacing its long-run average despite slowing from May's record.

On the inflation front, the rate of input cost inflation across India's service economy eased to a ten-month low in June, and was below its long-run average. Several service providers had maintained sufficient pricing power to pass on higher costs to clients. Despite easing from May, the rate of charge inflation remained above the series trend. Cost pressures were most intense in the Consumer Services category, while the fastest upturn in output charges was noted in the Finance & Insurance segment.


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