India: Services PMI ticks down in July
The HSBC India Services Purchasing Managers’ Index (PMI) dipped to 60.3 in July from 60.5 in June. As a result, the index remained above the 50.0 no-change threshold, but signaled a marginally softer improvement in services-sector business activity compared to the previous month.
The primary drivers behind the latest PMI reading include significant investment in technology and online offerings, new business gains and strong demand. Moreover, international sales saw the third fastest expansion in nearly a decade. Surging new orders, in turn, supported the hiring of both full and part-time workers.
Regarding prices, there was a notable increase in input costs due to higher wages and material costs, leading to the steepest rise in prices charged for services in seven years. Despite these cost pressures, the service sector remained optimistic about future growth prospects.