Mumbai, Aug. 5 -- The ongoing improvements in demand for Indian services continued to underpin growth of total new orders, international sales and output. Although the upturn added pressure on firms' capacity, hiring moderated. July's increase in employment was the slowest in 15 months, despite strengthening business confidence. Meanwhile, input costs and output charges rose at faster rates than in June.

At 60.5 in July, the seasonally adjusted HSBC India Services PMI Business Activity Index - based on a single question asking how the level of business activity compares with the situation the month before - was little-changed from 60.4 in June and therefore signalled another sharp increase in output. The rate of expansion was the best se...