India's services sector growth touches 2-month high in Jan: PMI
New Delhi (PTI): India's services sector growth rose to a two-month high of 58.5 in January, on faster expansion in new business intake and output, prompting service providers to hire additional staff, a monthly survey said on Wednesday.
The seasonally adjusted HSBC India Services PMI Business Activity Index rose to a two-month high of 58.5 in January, from December's recent low of 58.0, mainly driven by demand buoyancy, new business gains and tech investment.
In the Purchasing Managers' Index (PMI) parlance, a print above 50 means expansion, while a score below 50 denotes contraction.
"India's services PMI rose to 58.5 in January, up from 58.0 in December, signalling sustained momentum in the sector. Robust output growth was driven by a steady influx of new orders, including increased international demand from South and Southeast Asia," said Pranjul Bhandari, Chief India Economist at HSBC.
Service providers in India noted faster growth in new business intake and output. They were also more upbeat towards the outlook and hired additional staff, the survey noted.
According to the survey, new orders rose at the quickest pace in two months. The main source of new business gains was the domestic market, but international orders nevertheless rose solidly.
Survey participants remarked on new business gains from clients in Indonesia, Kenya, Malaysia, Oman, Qatar, Sri Lanka, Thailand and Vietnam.
Service providers in India were more upbeat towards the outlook.
"Business confidence climbed to a three-month high, supported by efficiency gains, effective marketing, and the acquisition of new clients. While input and output prices are rising, they remain fairly mild by historical standards," Bhandari added.
On the price front, there were quicker albeit still moderate increases in input costs and selling charges, the survey said.
Cost pressures were by far most intense in the Consumer Services category, while the strongest increase in output charges was noted in the Finance & Insurance sector. Meanwhile, during January, India's private sector witnessed quicker increases in new orders and output, which in turn supported job creation and strengthened business confidence.
The HSBC India Composite PMI Output Index rose from last December's 11-month low of 57.8 to 58.4 in January.
Composite PMI indices are weighted averages of comparable manufacturing and services PMI indices.
Weights reflect the relative size of the manufacturing and service sectors according to official GDP data.
"The composite PMI also strengthened in January, reflecting solid demand growth across both manufacturing and services," Bhandari said.
On the job front, after stagnating in December, private sector employment increased at the start of 2026. Slight rates of job creation were noted at manufacturing firms and their services counterparts, the survey said.
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Hospital wall collapse: CM orders suspension of executive engineer; kin of victims get solatium
Bengaluru (PTI): Karnataka Chief Minister Siddaramaiah on Thursday ordered the immediate suspension of an executive engineer for the Bowring and Lady Curzon Hospital wall collapse that claimed the lives of seven people, during a high-level review meeting at Vidhana Soudha.
A compensation of Rs 5 lakh, as announced by the CM Siddaramaiah, was distributed to the families of seven victims who lost their lives in the tragedy on Wednesday evening, which occurred due to heavy downpour with gusty winds and hailstorm.
The meeting of municipal commissioners of the five corporations, chaired by the chief minister and attended by Deputy Chief Minister D K Shivakumar, focused on fixing accountability and examining lapses that led to the tragedy.
"Why was soil dumped in a way that damaged the wall? Why did you not monitor this?" Siddaramaiah asked, pulling up hospital authorities during the meeting.
A statement from the chief minister's office said that the CM ordered the immediate suspension of the executive engineer of the Karnataka Health Systems Development Project (KHSDP).
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He also questioned the hospital authorities, asking why they failed to monitor the dumping of soil that weakened the structure.
The chief minister directed that a notice be issued to the head of the Hospital.
During the meeting, Siddaramaiah said the rains had caused extensive damage in the city, with over 250 trees uprooted.
The Chief Minister instructed officials to take necessary measures before the onset of the monsoon to avoid untoward incidents.
Commissioners of all five municipal zones in Bengaluru have been asked to take precautionary steps, including trimming dry and dangerous tree branches, the CMO said.
Siddaramaiah also directed them to get the silt cleared from stormwater drains to prevent flooding, and that immediate action be taken to remove debris and fallen branches from roads.
Further, he instructed that barricades be placed at underpasses where water stagnates and restricts public movement.
The Greater Bengaluru Authority (GBA) Chief Commissioner M Maheshwar Rao said in a statement that Shivajinagar MLA Rizwan Arshad distributed compensation cheques of Rs 5 lakh each to the families of the deceased on Thursday.
Seven people, including a six-year-old girl, were killed and seven others injured when the compound wall collapsed amid heavy rain, strong winds and a hailstorm on Wednesday evening.
Police said the victims, comprising three from Bengaluru, two from Kerala on a study tour and one each from Uttar Pradesh and Assam, had taken shelter near the wall when it suddenly gave way, trapping them under the debris.
The chief minister questioned officials over the dumping of soil near the wall despite knowing it could weaken the structure, and directed that a notice be issued to the head of Bowring Hospital.
Siddaramaiah, who had visited the spot soon after the incident along with senior officials, reviewed the situation and ordered a detailed probe into the collapse.
