India services growth hits 3-month high, but Q3 expansion weakest since 2022


September services activity picked up on stronger domestic demand, but softer hiring and exports kept quarterly growth subdued, PMI data showed.

India’s dominant services sector picked up pace in September, with business activity expanding at its fastest rate in three months on stronger demand for financial, consumer and digital services. However, the July-September quarter recorded the weakest average growth in more than four years, highlighting a fragile recovery.

The HSBC India Services Purchasing Managers’ Index rose to 55.2 in September from 54.1 in August, although it came in below the preliminary estimate of 55.8. A reading above 50 indicates expansion.

The September rebound was led by stronger domestic demand. New business growth, a key measure of demand, accelerated to its fastest pace since June. However, international demand weakened, with export order growth slowing to its weakest level in nearly three years.

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