Now Reading: Services sector growth hits 4.5-year low in July, says HSBC PMI
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Services sector growth hits 4.5-year low in July, says HSBC PMI
Services sector growth hits 4.5-year low in July, says HSBC PMI
India's services sector grew at its slowest pace in 4.5 years in July, the HSBC India Services PMI falling to 53.3 from 57.4 in June. New business orders eased in domestic and…
The Story in Brief
India's services sector grew at its slowest pace in 4.5 years in July, the HSBC India Services PMI falling to 53.3 from 57.4 in June. New business orders eased in domestic and export markets due to fierce competition and fading demand, the survey of about 400 firms shows. The composite PMI, combining manufacturing and services, slipped to 54.3, the weakest since March 2022. Separately, the manufacturing PMI also declined to 53.5 in July, a five-year low, as per HSBC's index. Job creation showed a modest rebound in services but weakened further in manufacturing.
The Indian Opinion
Two PMI surveys released within days give conflicting signals: services activity slumped to a 4.5-year low while manufacturing fell to a five-year trough. Yet the media fixates on the headline number alone. Neither survey says India is heading for a recession. The composite PMI still points to expansion. The real test is whether consumer-facing firms report falling sales this quarter. Watch the next RBI monetary policy statement: if it flags weaker demand, the narrative shifts from a blip to a trend.
Sources (2): rediff.com, thehindu.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
