The HSBC India Services PMI for August 2026 was revised down to 54.1 from a preliminary estimate of 54.5, after a final reading of 53.3 in July, which had marked the weakest expansion since early 2022. Despite the downward revision, the latest figure still pointed to faster growth, supported by stronger demand and a rise in new business. However, the pace of expansion remained the second-slowest in nearly four-and-a-half years amid challenging market conditions.
New export orders increased solidly, broadly in line with the growth rate recorded in July. Employment continued to rise, with job creation reaching its fastest pace in 15 months.
On the price front, input cost inflation picked up slightly, driven by higher spending on digital platforms, electricity, inputs, labor, marketing, and regulatory compliance. Output price inflation also accelerated, reaching a three-month high, as firms continued to pass higher operating costs on to customers.
Business sentiment was little changed and remained below its long-run average.
