India's services PMI slides to lowest level in over four years
The HSBC India Services PMI fell to 53.3 in July, marking the slowest expansion since early 2022 as domestic and export demand weakened.
India's services sector recorded its slowest growth in more than four and a half years, with the HSBC Services PMI slipping to 53.3 in July, down from 57.4 the month before. The decline was driven by weaker domestic demand, intense competition and delayed orders, although overseas demand from the United Arab Emirates, United Kingdom and United States helped keep export sales ahead of overall growth. Finance and insurance firms were the sole sub-sector to post accelerating output and sales.
Hiring rose slightly after a six-month low, yet confidence fell to a seven-month trough. Input-cost inflation eased for the fourth month, while firms raised selling prices at the fastest pace since April. The broader HSBC India Composite PMI also fell, underscoring the services slowdown as the main drag on private-sector activity.
Why it matters
The slowdown signals weakening demand in India's large services economy, affecting growth outlook and employment.
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