India Services PMI Rises to 55.2 in September 2026 as Demand Improves

India’s services sector grew faster in September 2026 as demand for financial, consumer and digital services improved. The HSBC Services PMI rose to 55.2 from 54.1 in August 2026, although it was below the earlier estimate of 55.8. 

The improvement was not enough to change the picture for the quarter. The average services PMI for July-September was the weakest in more than four years, while hiring and overseas demand both lost some pace. 

New Business Picks Up 

New business, which is an important measure of demand, grew at its fastest pace since June 2026. Domestic demand was stronger during the month and helped the services sector grow faster. 

Demand from overseas was weaker. Growth in export orders slowed to its lowest level in nearly three years, suggesting that Indian service providers were relying more on domestic customers. 

Hiring Growth Slows 

Companies continued to add jobs in September 2026, but employment growth was slower than in August. 

Input cost inflation also eased to its lowest level in 10 months. At the same time, the increase in prices charged to customers was the slowest since June. 

Business confidence improved to a three-month high, but companies remained cautious. Only around 16% of firms expected their activity to increase over the next year. 

Composite PMI Hits Three-Month High 

The services sector was supported by faster growth in manufacturing. As a result, the India Composite PMI rose to 55.9 in September from 54.3 in August. 

However, the July-September average for the composite index was the weakest since the quarter ended March 2022. This shows that while September brought some improvement, overall growth during the quarter remained relatively weak. 

Read More: Axis Bank Share Price in Focus After It Reports Q2 FY27 Financial Update! 

Conclusion 

India’s services sector ended September on a better note, helped by stronger domestic demand and new business. However, weaker export orders, slower hiring and a low quarterly average show that the recovery is still not very strong. 

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