India Service Sector Continues To Expand In September

(RTTNews) - India service sector expanded at a solid pace in September but growth in total new business, exports and overall output grew at the slowest rates since late-2023, final data compiled by S&P Global showed on Friday.

The HSBC services Purchasing Managers' Index fell to 57.7 in September from 60.9 in the previous month. The flash reading was 58.9.

New business intakes grew sharply but the pace of expansion retreated to a ten-month low. New export orders growth moderated to the weakest in 2024 so far. Businesses were more confident in the outlook for output. Optimism was supported by projects pending approval and efficiency gains. Further, services employment growth extended to September.

Output prices grew at the smallest degree in over two-and-a-half years. There was a quicker increase in overall business expenses.

Data showed a general absence of capacity pressure at service providers. This was signaled by the outstanding business index, which registered broadly in line with the no-change mark of 50.0.

The final composite output index declined to 58.3 from 60.7 in August. The score remained below the flash estimate of 59.3. Both factory output and services activity grew at slower rates.