India’s services economy surged to a 10-month high in June, signaling robust economic momentum and growing opportunities in logistics and trade. Fueled by strong domestic demand and record-breaking international orders, the HSBC Services PMI rose to 60.4, up from 58.8 in May, according to the latest S&P Global survey.
This comes on the heels of manufacturing PMI hitting a 14-month high at 58.4, pointing to a synchronized growth across both major sectors of the economy.
Key Highlights
- Services PMI (June 2025): Climbed to 60.4, highest since August 2024.
- Composite PMI Output Index: Rose to 61, fastest expansion in 14 months.
- Export Boom: New international orders surged at one of the strongest rates since tracking began.
- Domestic Demand Strength: Services firms reported a sharp rise in new orders, led by consumer and corporate demand.
- Price Pressure Eased: Softer rise in input costs and output prices improved margins.
- Manufacturing PMI: Reached 58.4 in June, up from 57.6 in May.
- Employment Trend: Manufacturing added jobs, but hiring in services moderated slightly.
- Future Outlook: Business optimism remains strong, though slightly tempered among services firms.
Why This Matters for Logistics & Trade
- Rising Services Output drives demand for logistics, warehousing, and transportation support.
- Record export order growth signals momentum in cross-border trade, benefiting freight forwarders, NVOCCs, and exporters.
- Softening inflationary pressures ease operating costs for service providers, including those in the supply chain industry.
- Stable job creation in manufacturing supports logistics-intensive sectors like industrial distribution and e-commerce.
Expert Take
“The services PMI was up to a ten-month high, led by a sharp rise in new domestic orders. Margins improved, as the rise in input costs was below that seen for output charges,” said Pranjul Bhandari, Chief Economist at HSBC India.