# India’s services sector growth slows to a four-and-a-half-year low in July 2026-08-05T23:13:48+00:00 | Business & Economy | Indian Opinion Desk India's services sector expanded at its slowest pace in nearly four and a half years in July, with the HSBC India Services PMI Business Activity Index falling to 53.3 from 57.4 in June, The Hindu reported. New business inflows grew at their weakest rate since February 2022 as firms pointed to stiffer competition, softer demand and postponed orders, even as new export orders rose from the UAE, the UK and the US. HSBC's Pranjul Bhandari said the sector 'continued to expand in July, albeit at a slightly slower pace,' and that 'hiring showed a moderate rebound, while profit margins improved as input costs softened and firms increased their selling prices.' Only 6% of firms added to payrolls in the survey of roughly 400 service companies, with 92% reporting no change, while the composite PMI, which also covers manufacturing, slipped to 54.3 from 57.1, the weakest reading since March 2022. ## Indian Opinion Analysis A reading of 53.3 stays above the 50 level that separates expansion from contraction, so The Hindu's report is describing slower growth rather than a downturn, a distinction worth holding onto given how sharply the index fell in a single month. Bhandari's comments and the survey both draw on around 400 service firms, a meaningful sample rather than a full census of the sector, so one month's dip should not be read as settling whether the slowdown continues. Export gains from three separate markets and the modest hiring uptick are real offsetting details that a reading focused only on the headline index number would miss. August's HSBC India Services PMI reading will show whether the index recovers or extends July's fall. ## Coverage - www.thehindu.com Tags: HSBC, Purchasing Managers Index Canonical: https://indianopinion.org/indias-services-sector-growth-hits-four-and-a-half-year-low-in-july-on-weak-demand-pmi/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/indias-services-sector-growth-hits-four-and-a-half-year-low-in-july-on-weak-demand-pmi/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.