India's services growth moderated in February as cost pressures mount, PMI shows
The Hindu
India's services sector growth slowed in February amid rising costs and competition, despite a boost from international sales.
India’s services sector growth slowed in February as new business rose at its slowest pace in over a year and firms faced the steepest cost pressures in two-and-a-half years, a survey showed.
The HSBC India Services Purchasing Managers’ Index , compiled by S&P Global, fell to 58.1 in February from January’s 58.4, and undershot a preliminary estimate of 58.4.
The 50-mark separates growth from contraction.
New business — a key gauge of demand — expanded at the slowest pace since January 2025, held back by intensifying competition among service providers despite increased marketing campaigns.
However, international sales provided a bright spot, rising at the fastest pace since August as firms reported higher demand from abroad.
Service providers faced a sharper increase in operating expenses, driven primarily by higher food costs along with energy and labour.
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