NEW DELHI, Sep 3: India’s services sector gained momentum in August, with business activity improving as new orders increased and employment growth reached its strongest level in 15 months.
The latest data showed the services Purchasing Managers’ Index (PMI) rising to 54.1 in August, indicating continued expansion in the sector. Growth was supported by stronger demand and an improvement in incoming business.
Hiring also strengthened during the month, with companies increasing their workforce at the fastest pace recorded in 15 months. The improvement in employment points to growing confidence among service sector firms about business prospects.
Cost pressures remained relatively contained, although companies continued to face higher input expenses. Selling price inflation also accelerated, suggesting that some businesses passed a portion of increased costs on to customers.
The performance of the services industry remains important for India’s broader economic outlook because of its contribution to output, employment and exports.
The August figures come after India recorded 7.8 per cent economic growth in the first quarter of the 2026-27 financial year, reinforcing expectations of continued domestic economic activity.