India’s services PMI in January increased to 58.5, marking a slight recovery from the 11-month low in December at 58, though hiring remained subdued, according to S&P Global-HSBC’s India Services Purchasing Managers’ Index (PMI).
Rise in new export businesses helped push the growth with demands increasing from Indonesia, Qatar, Sri Lanka and Vietnam. As a result, the numbers expanded fastest since November.
Although it is below the market estimate of 59.3, the January reading still marks the longest streak of consecutive month of expansion for 54 months straight since 2005. Survey data was collected between January 9 and 28.
The government’s Economic Survey last week also showed services as key driver of Indian exports for FY2025-26.
A PMI reading above 50 indicates expansion, while a print below that threshold signals contraction.
Hiring turned positive in January but remained weak, indicating little improvement in jobs growth in the services sector.
Cost pressures also increased as input prices rose at the fastest pace in four months, leading firms to raise prices for customers. Even so, business confidence improved, with companies more optimistic about the year ahead on expectations of better efficiency and new business.
At the same time, composite numbers reflecting both services and manufacturing also rose to 58.4 in January from 57.8 in December.
“Robust output growth was driven by a steady influx of new orders, including increased international demand from South and Southeast Asia,” said Pranjul Bhandari, chief India economist at HSBC.
India’s manufacturing PMI for January, released this week, also increased to 55.4 from December’s 55.
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