New Delhi, June 3 (IANS): India’s services sector activity strengthened in May, with the HSBC India Services PMI climbing to 59.8 from 58.8 in April, driven by robust demand across freight, digital solutions, e-commerce, entertainment and IT. The survey showed companies lifted activity and continued hiring, supported by new business growth. Cost pressures, though historically high, eased to their lowest in four months, allowing selling prices to rise at the softest pace since January. HSBC Chief India Economist Pranjul Bhandari said the PMI signalled expansion in business activity, with external demand rebounding after April’s decline and input cost inflation easing, reducing pressure on prices.
New orders rose to their highest in six months, moving further away from the slowdown seen in March. Export business also expanded, though at a slower pace than total sales, with gains reported from markets including Australia, Canada, France, Germany, Hong Kong, Malaysia, the UAE and the UK. Demand improved despite higher charges, as inflation in selling prices moderated to a four-month low, broadly in line with long-run averages. Services firms signalled further job creation, with overall hiring solid and the second-fastest in nearly a year, though fewer than 7 per cent of panellists reported increased headcounts. The PMI data underscores resilience in India’s services economy, supported by strong domestic and international demand alongside easing cost pressures.