India (Feb) HSBC India PMI services actual: 58.4 vs 58.5 previous

India (Feb) HSBC India PMI services actual: 58.4 vs 58.5 previous

India’s HSBC Services PMI Slightly Eases in February, Suggesting Steady Expansion

The HSBC India Services Purchasing Managers Index (PMI) for February stood at 58.4, marginally below the revised 58.5 recorded in January. The reading, though slightly lower, continues to signal expansion in the services sector, as values above 50 indicate growth. The modest decline suggests a moderation in the pace of growth but underscores the sector’s resilience amid broader economic conditions.

The services sector remains a critical driver of India’s economy, contributing nearly 55% of GDP. The PMI data aligns with reports of sustained demand in areas such as business services, healthcare, and education, though recent trends hint at softer momentum in some sub-sectors. Input costs and hiring activity appear to have stabilized compared to prior months, reflecting a more balanced operating environment for service providers.

The composite PMI—a broader gauge of India’s economic health, combining manufacturing and services activity— also showed a decline to 58.4 in January from 59.5 previously. While the services index alone softened only slightly, the composite data highlight a cautious outlook for overall private-sector growth in the near term.

Market analysts will likely monitor upcoming inflation data and central bank policy decisions for clues on how sustained PMI trends might influence monetary policy. For now, the services sector’s continued expansion provides a counterbalance to moderation in other areas of the economy.

India Services Purchasing Managers Index (PMI) data via Economic Calendar: India Services Purchasing Managers Index (PMI) data via Economic Calendar.
HSBC Flash India Composite PMI report: HSBC Flash India Composite PMI report.
HSBC India Services PMI methodology and analysis: HSBC India Services PMI methodology and analysis.

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