Did India's Services PMI Surge to 59.8 in November Due to Strong Output Growth?
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Synopsis
India's services PMI has surged to 59.8 in November, driven by strong new business intakes, signaling robust output growth. This marks a significant recovery from October, showcasing resilience in the services sector despite some pressures in international sales.
Key Takeaways
- India’s services PMI increased to 59.8 in November.
- Robust new business intakes fueled output growth.
- Employment growth remained modest.
- International sales saw improvement but at a slower rate.
- Manufacturing PMI recorded at 56.6.
New Delhi, Dec 3 (NationPress) The Business Activity Index for India’s services PMI increased from 58.9 in October to 59.8 in November, propelled by a significant rise in new business intakes that stimulated output growth, as reported in the HSBC India Services Purchasing Managers’ Index (PMI) survey by S&P Global released on Wednesday.
The seasonally adjusted index reaching 59.8 in November indicates a “historically sharp” expansion in output, surpassing the previous month’s performance, according to the report.
“Employment growth was modest, with most firms reporting no changes in payroll figures. Meanwhile, India’s composite PMI remained strong, although it saw a slight dip to 59.7 in November, which reflects a slowdown in the factory production growth,” stated Pranjul Bhandari, Chief India Economist at HSBC.
Indian services activity saw an acceleration in growth during November, recovering momentum lost in October, spurred by a faster increase in new business inflows. Although international sales improved, the rate of growth fell to an eight-month low.
Data revealed that the positive demand trends were aided by a general absence of price pressures, as per the report.
“Indeed, demand for Indian services continued to show strength, evidenced by another increase in new business intakes. The rate of growth was sharp, quicker than in October and above the long-term average,” it further added.
While external sales rose, companies reported gains from Asia, Europe, and the Middle East. At the same time, reports from panel members indicated that intense international competition and the availability of cheaper services elsewhere limited growth.
The report also mentioned that, while more jobs were added to India’s service sector in November, the expansion rate was moderate and quite similar to the previous two months.
Firms remain optimistic about output growth, with positive sentiment linked to favorable demand, enhanced social media presence, marketing strategies, and efforts to keep price increases minimal.
The manufacturing sector experienced a slowdown in November, with the HSBC Manufacturing PMI recorded at 56.6.
Point of View
It's crucial to recognize the optimistic trends in India's services sector, particularly the rise in the PMI index to 59.8. This growth reflects resilience and potential despite global challenges, highlighting the importance of monitoring such economic indicators for future planning and policy-making.
NationPress
03/12/2025
Frequently Asked Questions
What does PMI stand for?
PMI stands for Purchasing Managers' Index, a key economic indicator that reflects the economic health of the manufacturing and service sectors.
Why is an increase in PMI significant?
An increase in PMI indicates expansion in the economy, suggesting increased business activity and growth, which can lead to job creation and a stronger economic outlook.
What factors influence the PMI?
Factors influencing PMI include new business orders, inventory levels, production levels, supplier deliveries, and employment levels.
How does PMI affect the stock market?
A rising PMI can boost investor confidence, potentially leading to a positive impact on the stock market, as it signals economic growth.
What was the PMI for India's manufacturing sector in November?
In November, the PMI for India's manufacturing sector was recorded at 56.6, indicating a slowdown compared to previous months.
