India’s services sector growth slowed in October, slipping to a five-month low after reaching a 15-year high in August, as weaker export demand and rising global competition weighed on new business and output, according to a private survey released Thursday. The HSBC India Services Purchasing Managers’ Index (PMI), compiled by S&P Global, dropped to 58.9 in October from 60.9 in September and 62.9 in August — the lowest since May. Despite the decline, the index has stayed above the 50-point mark that separates growth from contraction for over four years, reflecting continued resilience in the sector.
The survey noted that while demand strength and GST relief supported operating conditions, factors such as stiff competition and heavy rainfall limited growth. Firms, however, remained optimistic about business activity over the next year. The index draws insights from around 400 companies across finance, transport, IT, real estate, and business services.
Meanwhile, India’s composite PMI eased to 60.4 from 61.0 in September, largely due to the services slowdown, even as manufacturing activity improved. The manufacturing PMI rose to 59.2 from 57.7, driven by stronger productivity, GST benefits, and higher tech investments, signaling renewed factory momentum despite service-sector softness.