Services PMI Rises To 58.8 In May; Hiring Hits All-Time High; Check Other Details

The resilience in business activity was underpinned by strong client demand, repeat orders, and an increase in advertising efforts, with service providers reporting higher workloads

One of the most notable findings of the report was the spike in international demand

Source : Pexels

India's services industry continued its upward trajectory in May 2025, with business activity expanding for yet another month, according to the HSBC India Services Purchasing Managers’ Index (PMI) released on Wednesday. The index rose slightly to 58.8, compared to 58.7 in April, reflecting robust, albeit marginally moderated, growth.

Compiled from a monthly survey of approximately 400 service-based firms, the PMI signals sectoral expansion when it registers above the 50-mark threshold. The latest reading of 58.8 indicates strong momentum in the services economy. “Registering 58.8 in May, the seasonally adjusted HSBC India Services PMI Business Activity Index... was broadly in line with April's reading of 58.7 and therefore signaled another sharp rate of expansion,” the report stated.

The resilience in business activity was underpinned by strong client demand, repeat orders, and an increase in advertising efforts, with service providers reporting higher workloads that necessitated expanded workforce capacity.

Record Surge In Export Demand

One of the most notable findings of the report was the spike in international demand. Survey participants noted a marked improvement in export orders, recording one of the highest increases in the 19.5-year history of the index. This surge was second only to June 2024. Firms cited elevated demand from key regions, including Asia, Europe, and North America, as primary contributors to the strong export performance.

Employment Hits Record High

In response to the sustained rise in new orders, companies ramped up hiring at a record pace. “Ongoing improvements in demand for Indian goods and services led to survey-record increases in jobs across the two sectors. Hence, aggregate employment expanded at an unprecedented pace,” HSBC noted.

Improved Business Outlook

After a dip in optimism during April, business confidence rebounded in May. Firms expressed renewed hope for continued growth, supported by better staffing levels, a growing client base, and strategic marketing efforts.

A Positive Outlook Ahead

With steady output, historic job creation, and surging global demand, India's services sector is poised to maintain its growth trajectory. The PMI data for May paints a promising picture of the economy’s underlying strength as it enters the second half of the year.