February PMI services comes in at 58.1; new order growth at 13-month low

India's PMI services for the month of February came in at 58.1 against 58.5 in the month of January, according to the HSBC India Services PMI Business Activity Index. Output growth across India's service economy was broadly stable heading towards the end of the current fiscal year, despite new orders rising at the slowest pace since January 2025. 

 

Although new order intakes increased sharply in February, the pace of expansion dropped to a 13-month low. While greater client enquiries and marketing efforts supported sales at some units, a few companies suggested that an increasingly competitive environment dampened growth.

 

Pranjul Bhandari, Chief India Economist at HSBC, said: "India’s Services PMI registered 58.1 in February, largely unchanged from January’s 58.5, signalling another month of robust expansion in the sector. While new order growth slowed to a 13-month low amid rising competition, service providers saw a notable pick-up in international sales and responded with increased hiring to meet operational needs. Input and output price inflation accelerated, with firms passing higher expenses — particularly for food and labour — on to customers, yet business confidence climbed to its highest level in a year as companies looked to broaden their market presence. Overall, the composite PMI rose to 58.9, reflecting the fastest pace of private sector activity growth in three months, buoyed by strong momentum in manufacturing."  Finance & insurance was again the brightest spot, recording the quickest increases in output and new orders out of the four monitored sectors. This was despite rates of expansion retreating in both cases. Real estate & business services propped the rankings for the two aforementioned measures.