Services growth in July strongest in 11 months

The uptick in India's services sector was strongest in eleven months in July, aided by growth of total new orders, international sales and output.

- FE BUREAU

At 60.5 in July, the seasonally adjusted HSBC India Services PMI Business Activity Index—based on a single question asking how the level of business activity compares with the situation the month before—was little-changed from 60.4 in June and therefore signaled another sharp increase in output.

The rate of expansion was the best seen since August 2024.

Although the upturn added pressure on firms' capacity, hiring moderated. July's increase in employment was the slowest in 15 months, despite strengthening business confidence.

Meanwhile, input costs and output charges rose at faster rates than in June.