Economic Buzz: India services PMI rises to 54.1 in August, signalling stronger but subdued growth

India?s services sector recorded a stronger rise in business activity in August, with the HSBC India Services PMI Business Activity Index increasing to 54.1 from 53.3 in July. However, growth remained among the weakest in more than four years and below the long-run average of 54.5. New business inflows also strengthened, supported by customer demand and marketing initiatives, while international demand remained solid. New export orders rose at a similar pace to July. Service firms continued hiring, with employment growth reaching a 15-month high, as companies added staff to support customer service, sales and digital operations. The HSBC India Composite PMI Output Index was unchanged at 54.3 in August, marking a solid but subdued pace of private-sector growth. Faster services activity offset slower manufacturing growth. Aggregate employment rose at the fastest pace in 14 months, while composite input cost inflation eased to a seven-month low. Charge inflation, however, accelerated to its strongest since April.

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