New Delhi: India’s services sector activity remained robust in September, with the HSBC India Services Purchasing Managers Index (PMI) recording 60.9, according to data released by S&P Global on Monday.

Pranjul Bhandari, Chief India Economist at HSBC, said business activity in the services sector stayed strong, although it was slightly lower than the recent high observed in August.

“Most trackers moderated, but nothing in the survey suggested there is a big loss in growth momentum in services,” she said. “Instead, the Future Activity Index rose to its highest level since March, indicating strengthening optimism among services companies about business prospects.”

The PMI reading pointed to continued stability in India’s services economy, supported by firm demand, new business activity, and a positive outlook among firms. The sector has remained a key contributor to India’s overall economic performance this year.

Meanwhile, India’s manufacturing sector also maintained growth momentum in September, though at a slower pace. The HSBC India Manufacturing PMI stood at 57.7, down from 59.3 in August, marking the weakest improvement in sector health since May. However, the figure remains well above the neutral 50 level, which separates expansion from contraction.

The September report noted that manufacturing output continued to expand on the back of steady demand, though firms reported a mild slowdown in new orders and purchasing activity. Employment levels and input inventories remained stable, reflecting confidence in the business outlook for the coming months.

In August, India’s manufacturing PMI had risen to 59.3, driven by strong domestic demand and robust production. S&P Global said this marked the fastest improvement in operating conditions in more than 17 years, supported by buoyant demand across intermediate and capital goods categories.

Analysts note that while both manufacturing and services sectors moderated slightly in September, the overall growth momentum in India’s economy remains firm, underpinned by steady domestic demand, policy stability, and improving business confidence.

IANS