The HSBC India Services PMI for September 2026 was revised down to 55.2 from a preliminary estimate of 55.8, following a final reading of 54.1 in August and falling short of market expectations of 56.2. Even so, the index signaled the fastest expansion in the services sector since June, underpinned by stronger output amid robust demand.
New business inflows rose at the quickest pace in three months, supported by intensified marketing efforts and firmer demand in financial and insurance services. External demand also strengthened, although export growth slowed to a moderate rate, marking its weakest expansion in nearly three years.
In response to higher new orders, firms expanded their workforce, but the rate of job creation moderated and was weaker than in August.
On the cost side, input prices increased, largely reflecting higher food costs, fuel prices, and insurance premiums. However, output charge inflation eased, falling to a three‑month low.
Looking ahead, business confidence improved to a three‑month high, supported by resilient demand conditions and a rise in customer enquiries.