India's services sector slows just a touch in February
India's services sector slowed just a touch in February 2026, with the HSBC Services PMI dipping to 58.1 from January's 58.4, according to S&P Global/HSBC's final release—mostly because new business growth lost some steam.
Still, international sales actually grew at their fastest pace since August last year.
Input costs rose steeply
Service companies faced their steepest jump in input costs in two-and-a-half years, thanks to pricier food, energy, and labor.
To keep up with demand and rising backlogs, many firms brought on more staff.
Manufacturing picks up speed
While services cooled a bit, manufacturing picked up speed—its PMI hit a four-month high at 56.9—and overall private sector growth was the strongest it's been in three months.
With rising costs pushing prices higher, the data may keep the Reserve Bank of India cautious as it monitors inflation against its 2-6% target range.