May 6 (BNP): India’s services sector gained momentum in April, rising to a five-month high as stronger demand and new business orders supported overall expansion, according to the latest HSBC Services PMI data compiled by S&P Global.
The seasonally adjusted index increased to 58.7 in April from 58.5 in March, marking the 45th consecutive month above the 50-point threshold that separates growth from contraction.
The improvement was driven by a sharp rise in new orders, which also encouraged companies to increase hiring at a faster pace to meet rising workload. Employment growth reached a ten-month high as firms expanded capacity to handle stronger business inflows.
International demand also strengthened, with export orders rising at their fastest pace since July 2024, supported by clients from Asia, Europe, West Asia, and the United States. Finance and insurance sectors led the growth, while consumer services also showed strong performance.
Although input cost pressures eased to a six-month low, companies raised selling prices at a quicker rate, reflecting higher wage and transportation expenses.
Despite a slight dip in business confidence, firms remained broadly optimistic about continued growth in the coming months, supported by steady demand conditions and improving market activity.
