What Does India’s Services PMI at 60.9 in September Indicate?
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Synopsis
India's services sector shows resilience with a PMI of 60.9 in September, indicating sustained growth and optimism. This article explores the implications of this data and analyzes the broader economic landscape, including manufacturing trends, while providing insights into future prospects.
Key Takeaways
- PMI of 60.9 in services indicates strong growth.
- Manufacturing PMI at 57.7 shows continued expansion.
- Future Activity Index reflects improved optimism.
- Domestic demand remains a key driver.
- Overall growth momentum in India's economy is stable.
New Delhi, Oct 6 (NationPress) The activity within India’s services sector demonstrated consistency in September, as evidenced by the HSBC India Services Purchasing Managers’ Index (PMI) which recorded a notable 60.9, following data released by S&P Global on Monday.
Pranjul Bhandari, Chief India Economist at HSBC, commented on the situation, noting that business operations in the services sector remained robust, albeit slightly below the peak observed in August.
She stated, “Most indicators saw a moderation, but the survey did not indicate any significant loss in growth momentum for services.”
Furthermore, the Future Activity Index climbed to its highest level since March, reflecting an increase in optimism among service providers regarding their business outlook.
The PMI figure indicates ongoing stability within India’s services economy, backed by strong demand, an uptick in new business activities, and a favorable outlook from companies.
This sector has been a vital contributor to India’s overall economic performance throughout the year.
In the meantime, India’s manufacturing sector also sustained its growth trajectory in September, albeit at a diminished rate.
The HSBC India Manufacturing PMI recorded 57.7, down from 59.3 in August, representing the slowest improvement in sector health since May.
However, this figure remains significantly above the neutral 50 threshold, which differentiates between expansion and contraction.
The September report underscored that manufacturing output persisted in its growth due to consistent demand, although firms noted a slight decline in new orders and purchasing activities.
Employment levels and input inventories were stable, indicating confidence in the business landscape for the upcoming months.
In August, India's manufacturing PMI had surged to 59.3, propelled by strong domestic demand and vigorous production.
S&P Global reported that this represented the swiftest improvement in operational conditions in over 17 years, with much of the momentum stemming from successful advertising and buoyant demand across intermediate and capital goods sectors.
Analysts are optimistic that despite a slight moderation in both manufacturing and services sectors in September, the overall growth momentum in India’s economy remains robust, supported by consistent domestic demand, stable policies, and enhancing business confidence.
Point of View
It's evident that India's economy is navigating through a complex landscape. Despite slight fluctuations in both manufacturing and services sectors, the underlying strength of domestic demand and policy stability suggests a promising outlook. Our focus remains on presenting balanced, fact-based insights that reflect the nation's economic pulse.
NationPress
06/10/2025
Frequently Asked Questions
What is the significance of the 60.9 PMI?
A PMI of 60.9 indicates strong growth in the services sector, reflecting robust business activity and confidence among service providers.
How does the manufacturing PMI compare?
The manufacturing PMI stood at 57.7 in September, showing growth but at a slower rate compared to the previous month.
What factors are contributing to the growth in services?
Strong demand, new business activities, and a positive outlook from companies are key factors supporting growth in the services sector.
What does the Future Activity Index indicate?
The Future Activity Index rising to its highest level since March indicates increasing optimism among service companies about future business conditions.
Is the overall economic momentum in India stable?
Yes, despite some moderation in sector growth, the overall economic momentum remains firm, bolstered by steady domestic demand and improving business confidence.
