India's services sector showed signs of tempering its rapid expansion, as the S&P Global Services Purchasing Managers' Index (PMI) modestly dipped to 59.1 in December 2025, down from 59.8 in November. Released on December 16, 2025, the latest PMI results still indicate robust growth, albeit at a slightly slower pace.
The decline marks a subtle shift for the Indian services sector, which has been on an upward trajectory throughout the year. A PMI higher than 50 generally signals expansion, meaning the sector is still experiencing healthy activity levels despite the slight decrease. Economists typically analyze such shifts for potential indicators of future economic trends or changes in market conditions that could impact the sector's performance.
This softening in growth is worth monitoring as it could reflect changing dynamics within the Indian economy, potentially involving consumer demand fluctuations, supply chain issues, or broader market factors. Businesses and investors will be keenly watching for any further signs of cooling in the coming months to adjust strategies and forecasts accordingly.
