India Services PMI hits 15-year high in August on new orders, output rise

India services PMI: Composite PMI Output Index rose to 63.2 in August from 61.1 in July

India’s services sector continued its strong run, hitting a 15-year high in August on new orders and rise in output led by international demand, with the HSBC India Services Purchasing Managers’ Index (PMI) climbing to 62.9, up from 60.5 in July, according to S&P Global data released on Wednesday.

 

Composite PMI Output Index rose to 63.2 in August from 61.1 in July.

 

Pranjul Bhandari, chief India economist at HSBC, said, "India’s services PMI Business Activity Index reached a fifteen-year high last month, from 60.5 in July to 62.9 in August, on the back of surging new orders. The broad-based expansion in international sales bolstered overall demand, which prompted Indian services firms to hire additional workers. Reflecting higher labour costs and robust demand conditions, both input and output prices increased substantially in August. Meanwhile, the composite PMI rose to a seventeen-year high of 63.2 in August, which indicated strong broad-based output growth in both the manufacturing and service sectors