S&P Global India Services PMI touches 10-month high level of 60.4 in June

03 July 2025: The Indian services sector demonstrated the fastest growth in ten months in June 2025. This was driven by increase in service activity in the month. The month also witnessed the Composite PMI (Purchasing Managers’ Index) rise to 61, the highest level in the past 14 months (showing strengthened demand figures).

Nifty Services Sector Index also showed gains of 3.72% in the past month, and it was 33,544.40 at 01:00 PM on Thursday.

PMI Climbs to 60.4 in June

The services PMI rose to 60.4 in June, up from 58.8 in May, though slightly below the preliminary estimate of 60.7. The 50.0 mark separates expansion from contraction, and June’s reading reflects a strong pace of growth.

Key Growth Drivers

The acceleration was largely led by a surge in new business orders, particularly from the domestic market. Export orders also continued to rise, albeit at a slightly moderated pace compared to May. According to survey respondents, overseas demand strengthened, especially from Asia, the Middle East, and the US.

Employment and Cost Trends

Although the demand environment supported job creation, the rate of employment growth eased from the record levels seen in May. On the pricing front, input cost inflation cooled to a 10-month low, with most companies citing higher staff wages as the main cost driver.

Despite the moderation in costs, service providers retained sufficient pricing power to pass on some costs to clients, although output price inflation eased and returned to historical averages.

Outlook Turns Cautious

However, the business outlook for the year ahead weakened, falling to its lowest level in more than two years, suggesting growing caution among service providers despite the ongoing momentum in demand.

Composite PMI Also Strengthens

The HSBC India Composite PMI, which blends services and manufacturing performance, climbed to 61.0 in June, up from 59.3 in May. This marks the fastest pace of expansion in 14 months, as strong manufacturing data complemented the services boom.

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