Now Reading: India services sector growth hits 4.5-year low in July
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India services sector growth hits 4.5-year low in July
India's services sector expanded at its weakest pace in four-and-a-half years in July, with the HSBC India Services PMI falling to 53.3 from 57.4 in June. New business orders eased in both…
The Story in Brief
India's services sector expanded at its weakest pace in four-and-a-half years in July, with the HSBC India Services PMI falling to 53.3 from 57.4 in June. New business orders eased in both domestic and export markets due to fierce competition, fading demand, and order postponements, the slowest inflow since February 2022. Employment picked up modestly from a six-month low, though 92 per cent of firms reported no change in payrolls. Input costs rose on higher fuel, labour, and transportation expenses, while selling prices increased at the fastest pace since April. Business confidence slipped to a seven-month low.
The Indian Opinion
Headlines may scream 'slowdown', but the HSBC PMI at 53.3 still signals expansion, not contraction. The real story is a normalisation after a blistering run, with fierce competition and fading demand the culprits, not a collapse. Job creation improved modestly, and export orders held up. The worry is falling business confidence and rising selling prices. The test will be the next few months: is this a trough or the start of a sharper cooldown?
Source: rediff.com
This story was synthesised by AI from the source linked above.
