India’s services sector grew at its fastest pace in three months in September, a private survey showed on Tuesday. The HSBC India Services PMI rose to 55.2 from 54.1 in August. A reading above 50 signals expansion.

The headline gain came on stronger demand for financial, consumer and digital services. New business grew at its quickest rate since June, driven mainly by domestic customers. Export orders, however, slowed to their weakest in nearly three years.

The improvement could not lift the full quarter. The July-September average fell to its lowest since the quarter ended March 2022. Employment growth also eased, and input cost inflation cooled to a 10-month low.

Business confidence rose to a three-month high but stayed subdued. Only about 16 percent of firms expected output to rise over the next year. Combined with manufacturing, the composite PMI reached a three-month high of 55.9 in September.

S&P Global compiles the index from responses by about 400 service-sector companies. Manufacturing PMI had already climbed to a seven-month high of 55.1 in September. Economists said the September data looks like stabilisation rather than a clear turning point for the economy.