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India’s services activity expanded at a faster pace in September 2026, with the HSBC India Services PMI Business Activity Index rising to 55.2 from 54.1 in August. The reading was the strongest in three months, but it came in below the preliminary estimate of 55.8—and the July–September average was the weakest since early 2022.
What does India’s services PMI at 55.2 mean?
The 55.2 figure is a seasonally adjusted diffusion-index reading from the HSBC India Services PMI, compiled by S&P Global. A reading above 50 signals that services business activity expanded compared with the previous month; a reading below 50 signals contraction. It does not mean services output grew by 55.2%.
The index is a survey signal about the direction of activity, not a direct measure of national output growth or a government national-accounts statistic. Reuters reported the September result, also covered by The Financial Express.
September’s final reading improved, but missed the flash estimate
The final September index rose 1.1 points from August’s 54.1 to 55.2. It was below the preliminary, or flash, estimate of 55.8 reported by Reuters. The final figure therefore shows acceleration from August, but a smaller improvement than the early estimate suggested.
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Why did services PMI rise while quarterly growth weakened?
A strong monthly reading and a comparatively weak quarterly average can both be true: the index measures month-to-month direction, while the quarter average summarizes readings across July, August and September. September was the fastest pace of services activity growth in three months, but the July–September average was the weakest since the quarter ended March 2022.
Demand indicators were mixed beneath the headline. New business grew at its quickest pace since June, supported more by domestic customers than by overseas demand. Export-order growth slowed to its weakest pace in nearly three years, according to Reuters and The Financial Express.
Hiring and prices showed different pressures
Services employment continued to increase in September, though hiring growth eased from August. Input-cost inflation fell to a 10-month low, while prices charged to customers rose at their slowest pace since June. These measures provide context for the activity reading: firms were still hiring and raising fees, but the pace of employment growth and customer price increases moderated.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Private-sector activity rose, but confidence remained subdued
The HSBC India Composite PMI, which covers manufacturing and services, increased to 55.9 in September from 54.3 in August. Business confidence reached a three-month high but remained subdued historically; around 16% of firms expected activity to increase over the next 12 months, Reuters reported.
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How to read the September signal
- Expansion, not a growth rate: 55.2 is above the PMI’s 50 threshold, indicating month-on-month expansion in the survey; it is not a 55.2% increase in output.
- One-month momentum improved: September was the strongest month in three months, although the final reading was lower than the flash estimate.
- The quarter was less strong: the July–September average was the weakest since early 2022.
- Demand was uneven: domestic business helped support new orders as export momentum slowed.
- Some pressures eased: employment still grew, but more slowly, and input-cost inflation cooled.
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