India services growth hits six-month high in May
The HSBC India Services PMI rose to 59.8 in May as domestic demand for IT and entertainment reached its highest level since late 2025. While input cost inflation eased and the composite index hit a six-month peak, business confidence dipped for a second month amid global trade uncertainty.
India services activity reached a six-month high in May as domestic demand for e-commerce and entertainment surged. The HSBC India Services PMI rose to 59.8 from 58.8 in April, outperforming preliminary estimates of 58.9. Strong internal consumption is currently shielding the economy from cooling global trade and softening business confidence.
### Domestic Demand Offsets Global Headwinds New business orders climbed to their highest level since November 2025, fueled by gains in the IT and entertainment sectors. While domestic appetite remains robust, export orders grew only slightly after hitting a five-month low in April.
