Key facts
- India's services sector growth slowed significantly in July, reaching its weakest pace in over four years.
- The HSBC India Services Purchasing Managers' Index (PMI) fell to 53.3 in July from 57.4 in June.
- New business growth in India's services sector was the softest in nearly four-and-a-half years.
- International demand for Indian services weakened, despite export orders showing stronger growth than overall new business.
- Hiring in the services sector increased modestly, marking the seventh consecutive month of job creation.
- Business confidence among Indian service providers declined to a seven-month low.
- India's Composite PMI, covering both services and manufacturing, dropped to 54.3 in July from 57.1 in June.
Growth in India's dominant services sector slumped to its weakest pace in over four years in July, as demand was weighed down by fierce competition and fading client appetite, according to a survey. The HSBC India Services Purchasing Managers' Index (PMI), compiled by S&P Global, fell sharply to 53.3 in July from June's 57.4. Readings above 50.0 signal expansion in activity. New business, a key gauge for demand, rose only moderately, posting the softest expansion in close to four-and-a-half years. International demand also softened slightly from the previous month, despite export orders outpacing growth in overall new business. Hiring picked up from a six-month low recorded in June, marking a seventh month of job creation, though the improvement was modest. Input cost inflation eased for a fourth consecutive month, but selling prices rose at their fastest pace in three months as firms passed additional costs to clients. Business confidence slipped to a seven-month low, even though firms cited hopes of stronger demand and increased tourism. India's Composite PMI, which measures activity across both services and manufacturing, fell to 54.3 in July from 57.1, its weakest reading since March 2022, pointing to a broad-based loss of momentum across India's private sector.