India (Feb) HSBC India PMI services actual: 58.1 vs 58.4 previous

India (Feb) HSBC India PMI services actual: 58.1 vs 58.4 previous

India’s Services Sector Expands at Slightly Slower Pace in February: HSBC PMI

India’s services sector continued to expand in February 2026, though at a marginally reduced pace, according to the HSBC India Services Purchasing Managers’ Index (PMI). The index recorded a reading of 58.1, down from the previous month’s 58.4, indicating ongoing growth but with signs of moderation according to PMI data. A reading above 50 signals expansion, while below 50 reflects contraction.

The decline in the services PMI aligns with reports of easing demand and cautious business activity, despite resilient private-sector output. Separately, the HSBC Flash India Composite Output Index—a broader measure combining services and manufacturing— rose to 59.3 in February, marking the fastest expansion in three months, driven by robust manufacturing demand and new orders. However, services sector growth remained steady, albeit with downward pressure from rising input costs and output prices, particularly in service-oriented industries.

Persistent inflationary pressures remain a key concern for policymakers. The Reserve Bank of India (RBI) faces the challenge of balancing growth momentum with inflation control, as businesses pass on higher costs to consumers. While the services sector’s expansion suggests underlying economic resilience, the slight dip in the PMI highlights potential headwinds, including global economic uncertainties and domestic cost pressures.

Analysts note that the services sector’s performance will be critical in shaping India’s economic trajectory in the coming months. Continued monitoring of PMI data will provide insights into the sector’s ability to sustain growth amid evolving macroeconomic conditions.

HSBC India Services PMI data: As reported by market updates.
The Financial Express: Citing HSBC Flash India PMI Composite Output Index.

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