February brought more good news for India’s economy, as the services Purchasing Managers’ Index settled at a healthy 58.1. Published via HSBC’s India Services PMI, the figure – virtually flat from January – points to ongoing expansion in this vital sector, where anything over 50 spells positive territory.
Growth outlooks held firm, even as new orders decelerated to levels unseen in over a year, squeezed by ramped-up competition. Firms credited proactive sales strategies and customer outreach for offsetting slowdowns, while export orders provided an encouraging boost. To cope with demand, employment rose across providers.
In her analysis, HSBC Chief Economist Pranjul Bhandari emphasized continuity: ‘At 58.1, February’s reading mirrors January, delivering yet another solid expansion month for services.’ She noted international sales strength as a highlight amid domestic softening.
The overall private sector PMI jumped to 58.9, marking three-month highs thanks to manufacturing firepower. Services sub-sectors varied: finance and insurance surged ahead in output and orders, albeit slower than before. Real estate and business services, however, posted weaker gains, underscoring pockets of caution.
These metrics paint an optimistic canvas for India’s growth narrative, with services fortifying economic stability. As global headwinds loom, such domestic strength offers reassurance to markets and underscores the sector’s role in propelling the nation’s ambitions.