Thursday, 5 November 2026 · Full edition

India's services sector growth hits four-month high as input costs ease

File photograph: hsbc.
File photograph: hsbc. · Rehman Abubakr / Wikimedia CommonsCC BY-SA 4.0

What happened

India's services sector activity expanded at the fastest rate in four months during October, according to S&P Global. The HSBC India Services Purchasing Managers' Index (PMI) increased to 55.8 from 55.2 in September, while input cost inflation fell to a six-year low.

Why it matters

The rise in PMI signals accelerated sector expansion, while the decline in input cost inflation suggests improved margins for service-oriented firms. These trends indicate that businesses are managing broader economic pressures while maintaining robust operational growth.

Bigger picture

The data illustrates a favorable environment for India's services industry, where increased business activity is currently occurring alongside moderating cost burdens, a key dynamic for overall economic momentum.

Watch next

Monitor future S&P Global and HSBC PMI releases to determine if the growth momentum and cost moderation trends are sustained.

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