Services firms maintain positive outlook on demand conditions in Q2FY26

Reserve Bank of India (RBI) released the results of 45th round of its quarterly Services and Infrastructure Outlook Survey (SIOS) conducted during Q1:2025-26. This forward-looking survey captures qualitative assessment and expectations of Indian companies engaged in the services and infrastructure sectors. Services sector enterprises assessed improvement in the overall business situation, employment conditions and their turnover during Q1:2025-26. Responding firms reported easing of pressures from input and finance costs, while pressures stemming from salary outgo increased. Services firms maintained their positive outlook on demand conditions in Q2:2025-26, though their level of optimism recorded some moderation vis-'-vis the previous quarter. Pressures from wage bill, input cost and finance cost are likely to ease moderately though firms expressed lower optimism regarding selling prices and profit margins. Input cost pressures are likely to persist in H2:2025-26.

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