Now Reading: India Services Growth Slows to 53-Month Low in July
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India Services Growth Slows to 53-Month Low in July
India Services Growth Slows to 53-Month Low in July
The Story in Brief
India’s services sector growth slowed sharply in July, with the HSBC India Services PMI Business Activity Index falling to 53.3 from 57.4 in June. It marked the weakest increase in business activity in 53 months. New business inflows grew at their slowest pace since February 2022, as firms cited competition, weaker demand and postponed orders.
New export business rose from the UAE, UK and US. Hiring improved modestly, with 6% of firms increasing payrolls while 92% reported no change. Input costs increased, but firms also raised prices and reported better profit margins. The composite PMI fell to 54.3 from 57.1. The index remained above 50, indicating expansion.
The Indian Opinion
The figures point to slower growth, not a contraction, and should be read with care. The survey covered about 400 service firms, so it may not represent the whole economy. Export demand and modest hiring provide some support, but their overall scale is unclear. Claims of a broad-based slowdown would therefore be premature without further data from other sectors and indicators.
Source: thehindu.com
This story was synthesised by AI from the source linked above.
