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India Services Growth Hits Three-Month High Despite Fragile Q3
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Firstpost•06-10-2026, 11:52
India Services Growth Hits Three-Month High Despite Fragile Q3
- •India's dominant services sector accelerated in September with business activity expanding at its fastest rate in three months.
- •The HSBC India Services Purchasing Managers Index rose to 55.2 in September up from 54.1 in August.
- •Despite the monthly rebound the July-September quarter recorded the weakest average growth in more than four years.
- •The September recovery was primarily driven by stronger domestic demand while international export orders slowed to a nearly three-year low.
Key Questions Answered
The HSBC India Services Purchasing Managers' Index rose to 55.2 in September, up from 54.1 in August, though it remained below the preliminary estimate of 55.8.
The September rebound was driven by stronger domestic demand, which accelerated new business growth to its fastest pace since June. In contrast, international demand weakened as export order growth slowed to its lowest level in nearly three years.
The July-September quarter recorded the weakest average growth in more than four years, highlighting a fragile recovery for the dominant services sector despite the September uptick.
