India services PMI climbs to 54.1 in August, jobs growth hits 15-month high
Synopsis
India's services sector didn't just hold steady in August — it accelerated. With the PMI climbing to 54.1 and job creation hitting a 15-month high, the sector is pulling double duty: driving output and absorbing workers even as manufacturing cools. The easing of input cost inflation adds a further tailwind heading into the second half of the fiscal year.
Key Takeaways
The HSBC India Services PMI rose to 54.1 in August 2024 , up from 53.3 in July.
Employment growth in services hit a 15-month high , with around 11% of respondents reporting higher staffing levels.
New export orders rose solidly, with demand from Australia, Brazil, Canada, Japan, Malaysia, Singapore, Sri Lanka , and the UAE .
The HSBC India Composite PMI held at 54.3 in August, unchanged from July, as services offset a manufacturing slowdown.
Aggregate employment across sectors rose at its fastest pace in 14 months ; composite input cost inflation eased to a seven-month low .
India's services sector logged a stronger expansion in August 2024, with the seasonally adjusted HSBC India Services PMI Business Activity Index rising to 54.1 from 53.3 in July, according to data released on Thursday, 3 September. Crucially, employment growth across the sector accelerated to a 15-month high, underlining the resilience of domestic demand even as manufacturing showed signs of cooling.
Key Developments
Service providers reported sustained demand conditions and higher new business inflows during the month, with marketing initiatives and stronger customer demand cited as the primary drivers of activity. Around 11 per cent of survey respondents reported higher staffing levels — the fastest pace of job creation in over a year. Firms pointed to the need to bolster customer service, sales, and digital operations as the rationale for expanded hiring.
International Demand Holds Firm
Export orders also remained a bright spot, rising solidly in August at a pace broadly similar to July. Businesses reported stronger inflows from clients in Australia, Brazil, Canada, Japan, Malaysia, Singapore, Sri Lanka, and the UAE, reflecting the continued global appetite for Indian services — particularly in technology, consulting, and business process management.
What the Composite Picture Shows
The HSBC India Composite PMI Output Index held steady at 54.3 in August, unchanged from July, as the faster services expansion offset a slowdown in manufacturing. Aggregate employment across both sectors rose at its fastest pace in 14 months, with robust services hiring more than compensating for a reduction in manufacturing headcount. Composite input cost inflation, meanwhile, eased to a seven-month low, offering some relief on the price front.
What Economists Are Saying
Pranjul Bhandari, Chief India Economist at HSBC, said services activity expanded faster in August, supported by stronger output and new business. 'Employment increased at a marked rate, with job creation reaching a 15-month high,' Bhandari noted, adding that price pressures picked up only modestly during the period.
What This Means Going Forward
A PMI reading above 50 signals expansion, and India's services sector has now remained firmly in growth territory. The combination of rising employment, easing cost pressures, and resilient export demand positions the sector as a key buffer against any broader economic softness. Attention will now turn to whether manufacturing can recover its momentum in the coming months, and whether the Reserve Bank of India (RBI) factors the sustained services strength into its next policy deliberations.
Point of View
But the more consequential number here is the 15-month employment high — it suggests services firms are not just winning orders but committing to headcount, which is a stronger signal of confidence than output alone. The offset dynamic is worth watching: services are compensating for a manufacturing deceleration that, if it deepens, could test the composite index's stability. India's services-led growth story is intact for now, but it is increasingly carrying the weight that manufacturing has not yet picked up. The RBI will note the easing input cost inflation as a disinflationary signal, even as robust demand keeps the growth narrative alive.
NationPress
3 Sept 2026
Frequently Asked Questions
What is the HSBC India Services PMI and what does the August 2024 reading mean?
The HSBC India Services PMI is a monthly survey-based index measuring business activity in India's services sector, where a reading above 50 indicates expansion. The August 2024 reading of 54.1, up from 53.3 in July, signals that the sector expanded at a faster pace, driven by stronger new business and resilient demand.
Why did employment growth in India's services sector hit a 15-month high in August?
Services firms expanded hiring at the fastest pace in 15 months primarily to support customer service, sales, and digital operations, according to the HSBC data. Around 11 per cent of survey respondents reported higher staffing levels during August 2024.
Which countries drove India's services export demand in August 2024?
New export orders rose solidly in August, with stronger business reported from clients in Australia, Brazil, Canada, Japan, Malaysia, Singapore, Sri Lanka, and the UAE. The pace of growth in international orders was broadly similar to July.
What did the HSBC India Composite PMI show in August 2024?
The HSBC India Composite PMI Output Index held steady at 54.3 in August, unchanged from July. Faster growth in services offset a slowdown in manufacturing, and aggregate employment across both sectors rose at its fastest pace in 14 months.
How did input cost inflation trend in August 2024?
Composite input cost inflation eased to a seven-month low in August 2024, according to HSBC data. Price pressures in the services sector specifically picked up only modestly, as noted by HSBC's Chief India Economist Pranjul Bhandari.
