India’s Services PMI Falls to 58.9 in October; Slowest Growth in 5 Months

India’s services sector growth eased in October, marking its slowest pace in 5 months, as competitive pressures and heavy rains weighed on output expansion, according to the HSBC India Services PMI survey released on November 6, 2025.

Key PMI Reading

• HSBC India Services PMI:9 in October vs 60.9 in September
• Neutral Mark: 50 (above indicates expansion)
• Long-Run Average:3

Despite the moderation, the index remained comfortably above the neutral threshold, signalling continued expansion in service sector activity.

Drivers of Moderation

The survey attributed slower growth to competitive pressures and adverse weather conditions, which offset demand buoyancy and GST-related relief. International demand for Indian services improved, though external sales growth was the weakest since March.

Price Trends and Cost Pressures

Input costs and output charges rose at the slowest pace in 14 and seven months, respectively, aided by GST reforms. This indicates easing price pressures across the services sector. Companies continued to hire additional staff in October to meet delivery timelines and support rising new-business intake. Firms expressed strong confidence in business activity growth over the next 12 months.

Composite PMI Performance

The combined output of manufacturing and services sectors also moderated:

• HSBC India Composite PMI:4 in October vs 61 in September. This reflects the softest increase since May, though overall expansion remained sharp.

Read More: India's Economy Projected to Grow at 6.7% Annually.

Conclusion

India’s services sector maintained expansion in October despite slowing momentum, supported by resilient demand and easing cost pressures. With business confidence remaining strong, firms expect activity to rise in the coming year.

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