India's services sector accelerates, job creation hits 15-month high

India's services sector expanded at a quickened pace in August, signalling growing economic momentum as businesses reported increased new orders and customer demand. The HSBC India Services Purchasing Managers' Index rose to 54.1 in August from 53.3 in July, indicating accelerating growth in the crucial services segment that accounts for over half of India's economic output.

The improvement was driven by a rise in new business and fresh orders flowing into service providers, offering relief to companies navigating an otherwise uncertain economic environment. Business confidence appears to have strengthened during the month, with firms reporting improved client acquisition across sectors.

Employment growth emerged as a particularly encouraging bright spot in the data. Service sector companies expanded their workforce at the fastest pace in 15 months, suggesting that improved business conditions are translating into tangible job creation. The acceleration in hiring indicates companies are becoming more confident about sustained demand and future growth prospects.

The August reading marks a continuation of steady expansion in India's services economy, which has proven resilient despite global headwinds. With activity accelerating and employment gaining momentum, the services sector appears poised to support broader economic growth in the coming months.