The service sector in India demonstrated robust expansion during September, although growth in total new business, exports, and overall output slowed, reaching the lowest levels since late 2023, according to definitive data released by S&P Global on Friday.
The HSBC Services Purchasing Managers' Index experienced a decline, falling to 57.7 in September from 60.9 in August, with an initial flash estimate of 58.9.
There was a notable increase in new business intakes; however, the rate of expansion subsided to a ten-month low. Growth in new export orders decelerated, marking the weakest performance in 2024 to date. Businesses expressed increased confidence regarding future output, bolstered by projects pending approval and efficiency improvements. Additionally, the trend of employment growth in the services sector continued throughout September.
Output prices rose at their lowest rate in more than two-and-a-half years, although there was a sharper increase in overall business expenses.
The data indicated a general lack of capacity pressure among service providers, as evidenced by the outstanding business index, which hovered around the neutral threshold of 50.0.
The final composite output index decreased to 58.3 from 60.7 in August, falling short of the preliminary estimate of 59.3. Both manufacturing and services activities exhibited slower growth rates.
