India services activity expands in August, pace of growth cools to over 4-year low: PMI
India's services sector continued to expand in August 2026, though the pace of growth reached a four-year low. Despite the slowdown, employment creation hit a 15-month high as businesses managed rising costs and competitive pressures.
Why it matters
The PMI data serves as a critical indicator of the health of the Indian economy and its labor market amidst global economic fluctuations.
India's services activity expanded in August, supported by stronger output and new business, even as the overall pace of growth was the second-slowest recorded since March 2022, a monthly survey said on Thursday (September 3, 2026).
The seasonally adjusted HSBC India Services PMI Business Activity Index rose from 53.3 in July to 54.1 in August, as demand conditions remained supportive and new business inflows continued to rise.
The rate of expansion recorded in August was the second-weakest since March 2022, amid subdued bookings, strong competition and reduced transport operations.
The HSBC India Services PMI Business Activity Index is based on a single question asking how the level of business activity compares with the situation the month before.
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