India’s services sector PMI grew at its fastest pace in three months in September, driven by stronger domestic demand, a survey showed.

The HSBC India Services PMI climbed to 55.2 from 54.1 in August. A PMI is a monthly survey of company managers, and any reading above 50 means business is growing.

According to source’s report on the survey, this one has stayed above that line for 62 months in a row.

Services is India’s dominant industry, so the reading matters for the wider economy.

New orders did the heavy lifting. They rose at their quickest pace since June, with finance, insurance and consumer services leading the way.

Firms pointed to demand for digital services, food, insurance, loans, software, transport and travel.

Overseas buyers played a smaller part. Export orders still grew, but at the slowest pace in nearly three years.

Costs cooled too. Input cost inflation fell to a 10-month low, and the fees firms charged customers rose at the slowest pace since June.

Hiring continued, though it lost some steam. Fuller order books led companies to add staff, but job growth was slower than in August, mainly because real estate and business services firms recruited less.

The bigger picture is mixed. The September figure came in below an early estimate of 55.8, according to Reuters.

The July to September average was also the weakest since the quarter ended March 2022. Factories helped lift the overall numbers.

The composite index, which blends services and manufacturing output, rose to 55.9 from 54.3, a three-month high.

Manufacturing growth was its fastest since February, sources reported. Businesses felt more upbeat, but only a little.

Confidence reached a three-month high yet stayed low by historical standards.

Just under 16% of firms expect their output to rise over the next year, and the rest expect activity to stay broadly unchanged.

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