Business
India Services PMI Surges to Eight-Month High in May, Fueled by Robust Demand
📅 June 03, 2026 02:00 ET
⏱ 2 min
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GazetaDay Editorial
India’s services sector activity accelerated to an eight-month high in May, driven by strong demand conditions, according to the latest purchasing managers’ index (PMI) data.
PMI Data and Demand Drivers
The headline seasonally adjusted HSBC India Services Business Activity Index rose sharply in May, marking the fastest expansion since September 2025. Survey respondents attributed the upturn to robust demand, new business inflows, and improved client confidence. The index remained firmly above the 50-point threshold that separates growth from contraction for the 35th consecutive month.
Employment and Business Outlook
Employment in the services sector continued to rise, with firms adding staff at a solid pace amid sustained output growth. Business sentiment for the coming 12 months strengthened, supported by expectations of sustained demand and planned marketing initiatives. Input cost inflation eased from April, while output charges increased only marginally, reflecting competitive pressures in the sector.
Sector and Regional Performance
The strongest growth was recorded in finance and insurance, followed by transport and storage. On the regional front, services firms in the southern states reported the most pronounced expansion, while northern regions saw a moderate but steady improvement.
Market Context
As of June 3, 2026, the Russian ruble traded at 72.56 per US dollar (up 1.01) and 84.61 per euro (down 1.64). Bitcoin was at $67,268, down 4.2% over the past 24 hours. Brent crude oil was estimated at around $72 per barrel.
India Services PMIHSBCServices ActivityEconomic GrowthBusiness ExpansionAsia EconomyPMI Data