FX.co ★ India Services PMI Revised Downward

The HSBC India Services PMI for September 2025 was adjusted to 60.9, a slight decrease from the initial estimate of 61.6 and the final reading of 62.9 recorded in August. This reduction is attributable to a less vigorous expansion in new business activities and overall performance. Nonetheless, despite this decline, the index remains near the August peak, which represented the most significant growth in the services sector since June 2010. Output continued its upward trajectory, even as new orders saw a slower increase due to a weaker rise in foreign sales, which marked its slowest pace since March. Employment experienced a modest uptick. On the pricing front, there was an increase in input costs, primarily due to higher labor and material expenses. However, the overall rate of input inflation eased and stayed below its long-term average. The rate of selling price inflation also slowed, reaching its lowest point in six months. Looking forward, business confidence reached a six-month high, spurred by factors such as advertising initiatives, efficiency improvements, competitive pricing strategies, and recent tax reductions.