India services sector grows at fastest pace in three months- PMI

India's services sector experienced its strongest growth in three months during September, according to purchasing managers index data released on Tuesday. HSBC reported that the India Services PMI climbed to 55.2 in September from 54.1 in August, although it fell short of the preliminary estimate of 55.8. The surge in new business marked the quickest pace since June, while international demand showed a lack of vigor, with export order growth slowing to its weakest level in nearly three years.

This indicates that domestic customers played a more significant role in driving September's growth. Input cost inflation hit its lowest point in 10 months, whereas fees charged to customers increased at the slowest pace since June. Business confidence reached a three-month high, although it remained relatively low compared to historical standards.

Just around 16% of firms projected an uptick in activity over the next year. The average for the services index between July and September dipped to its lowest point since the quarter ended March 2022. The combined growth in services sector, coupled with the manufacturing PMI accelerating to its fastest pace since February, propelled the India Composite PMI to a three-month high of 55.9 in September from 54.3 in August.