FX.co ★ India Services Sector Growth Hits 14-Month High

The HSBC India Services PMI climbed to 61.2 in May 2025, rising from 58.7 in the prior month and surpassing market forecasts of 58.3, as per preliminary figures. This marks 46 consecutive months of growth in the services sector, showcasing the most rapid expansion since March 2024. This growth is attributed to the strongest output increase in 14 months and a faster acceleration in new orders. Domestic new orders advanced at their quickest rate in 11 months, while international demand also demonstrated heightened growth. Employment continued to rise, and backlogs of work increased at their slowest rate in eight months. On the pricing front, input costs escalated, and selling prices increased more swiftly as companies transferred rising expenses to their clients. Finally, business sentiment improved, buoyed by strengthening demand.