India's Services Growth Moderates in February Amid Rising Costs and Slower New Orders

India's services sector growth moderated in February, with the HSBC Services PMI easing slightly to 58.1 from January's 58.5, indicating continued expansion but at a slower pace. New business growth slowed to a 13-month low amid rising competition, while operating costs surged to a two-and-a-half-year high, driven by higher food, energy, and labor expenses. Despite cost pressures, firms raised output prices and increased hiring. International sales rose at the fastest pace since August, supporting overall activity. Business confidence reached a one-year high, reflecting optimism for future demand and marketing efforts. Concurrently, manufacturing activity strengthened, contributing to the composite PMI's rise to 58.9, the fastest private sector growth in three months.