India's service sector witnessed accelerated growth in August, driven by productivity gains and favorable demand trends, according to the latest survey data from S&P Global released on Wednesday.
The seasonally adjusted HSBC Services Purchasing Managers' Index (PMI) climbed to 60.9 in August, up from 60.3 in July. A PMI score above 50 signifies expansion in the sector. The preliminary score, or flash score, was 60.4.
New orders increased at their fastest rate in four months, marking 37 consecutive months of growth. Although export business grew at a slower pace, demand surged from regions including Asia, Australia, Europe, Latin America, the Middle East, and the United States.
Within the service sector, the finance and insurance segments emerged as top performers in terms of both output and new business.
On the pricing front, input price inflation dropped to its lowest level since August 2020, while the overall rate of charge inflation also remained moderate.
Indian service providers expressed confidence in business activity over the coming year. Rising backlogs and sustained growth in new business continued to support job creation, though the rate of employment growth fell to a four-month low.
The Composite Output Index held steady at 60.7 in August, significantly above its long-term average of 54.6. Service providers spearheaded overall growth, while goods producers recorded their weakest output increase in seven months.
