Services Sector Growth: Service sector activity in the country fell to a 10-month low in September. This was due to a slowdown in new orders, international sales, and production growth, a monthly survey said on Friday. The seasonally adjusted HSBC India Services Business Activity Index fell to 57.7 in September from 60.9 in August. This shows that although production has increased, its pace was the slowest since November 2023.

In the language of the index (PMI), prepared based on information received from purchasing managers, a score above 50 means that activities are expanding, while a score below 50 indicates contraction. Pranjul Bhandari, Chief Economist, HSBC India, said that India's service PMI data shows that the service sector expanded at a slow pace in September. The key business activity index fell below 60 for the first time in 2024, but at 57.7 it is still well above the long-term average. The index declined due to increasing competition, cost pressures and changes in consumer preferences (adoption of online services), and slow growth in new export orders.

According to the survey, companies reported the weakest growth in international orders in nine months. However, some companies saw gains in Asia, Europe, North America, West Asia and the US. Bhandari said margins of service companies are expected to decline further. Prolonged strong growth in new business has created strong labor demand. Meanwhile, the HSBC India Composite Production Index fell to 58.3 in September from 60.7 in August. The decline was due to slower growth in both factory output and service activity.