Demand remained robust, contributing to an increase in new business for service providers, although the rate of expansion softened from the previous month. The export of Indian services also improved, with the fastest pace of growth so far this year. Despite the positive outlook, concerns about inflation and competitive pressures slightly dampened confidence among service providers.

The employment rate in the service sector increased at the fastest pace in 2023, and outstanding business continued to rise. Input prices rose markedly, driven by higher costs of food, inputs, transportation, and wages. Service companies remained optimistic about future business activity, citing advertising, demand strength, and favorable market conditions. However, the persistence of output charge increases could impact purchasing power, affordability, and economic growth. Policy-makers are closely monitoring inflation, making interest rate cuts less likely in the near term.

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