The HSBC India Services PMI was revised up to 59.8 in May 2026, from a preliminary estimate of 58.9 and a final reading of 58.8 in April. This was the strongest expansion since November, reflecting continued growth in output and the fastest rise in new orders in three months.
Output growth was underpinned by robust demand conditions, new client acquisitions, and sustained increases in new business inflows. New export business also expanded, though at a slower pace than overall sales and below the average recorded in the 2025 calendar year.
Employment continued to rise, with job creation remaining solid and registering the second-fastest pace in just under a year.
On the price front, both input and output costs posted their sharpest increases in four months, driven by higher prices for food, fuel, gas, labor, and materials.
Business sentiment softened to a three-month low and stayed below its historical average. Nevertheless, firms remained optimistic overall, supported by expectations of favorable demand conditions.
