India’s Services Purchasing Managers’ Index (PMI) remained robust at 58.4 in November, showing little change from October’s 58.5, though slightly below the preliminary estimate of 59.2.

Demand Supported by International Growth

A sub-index for new business indicated strong demand, bolstered by the fastest rise in international orders since August, despite a slight decline from October.

Business Sentiment Reaches Six-Month High

Future activity projections showed significant optimism, with the business outlook at its highest level in six months due to predictions of sustained strong demand.

Record-Breaking Hiring in the Services Sector

November marked the fastest hiring pace since the survey began in December 2005, driven by improved business confidence, growing new orders, and robust international demand.

Rising Employment to Boost Consumption

The surge in employment could help address slowing consumption, a key factor dragging GDP growth, which eased to 5.4% in Q3 from 6.7% in Q2.

Inflationary Pressures and Rising Costs

Cost pressures surged, with input prices rising at their fastest pace in 15 months due to higher labor and material expenses. Firms passed on these costs, leading to the steepest price hikes in nearly 12 years.

Broader Economic Context and Outlook

The overall Composite PMI, which includes manufacturing and services, fell slightly to 58.6 in November from 59.1, as manufacturing activity also cooled. The Reserve Bank of India is expected to maintain its current policy stance amid rising inflation.