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Informist, Wednesday, Aug. 5, 2026

 

--India July services PMI 53.3 vs 57.4 in June

--India July composite PMI 54.3 vs 57.1 in June

--India July composite PMI 54.3, lowest in 53 months

 

NEW DELHI – India's services sector activity in July saw the weakest pace of growth in close to four-and-a-half years amid report of softer demand, competitive pressures, and fewer enquiries, S&P Global said Wednesday. "Equally, new business inflows expanded at a moderate pace that was the slowest since February 2022," S&P Global, which compiles the Purchasing Managers' Indices, said in a press release.

 

The HSBC India Services Purchasing Managers' Index moderated to 53.3 in July from 57.4 in June. At 53.3, the final Services Purchasing Managers' Index for June was above the flash estimate of 53.1 that was released Jul. 24. A Purchasing Managers' Index reading of more than 50 denotes expansion in activity from the previous month, while a print below 50 indicates contraction.  

 

"India's services sector continued to expand in July, albeit at a slightly slower pace, as new business growth eased in both domestic and export markets after several months of strong performance," Pranjul Bhandari, chief India economist at HSBC, said in the release.

 

The growth in the services sector was constrained by fierce competition, fading demand, softer market conditions and order postponements, the survey said, citing panel members. Of the four broad areas of India's service economy monitored by the survey, only finance and insurance recorded quicker rates of expansion in output and sales, the release said.

 

 

On the price front, input cost inflation eased to its lowest rate since January, but selling charges rose at a faster rate, S&P Global said. The output prices also rose at the quickest pace since April. "Consumer Services posted the strongest rate of cost inflation at the sub-sector level, albeit one that was the softest since the start of 2026." The survey found that the real estate and business services were at the top of the charge inflation rankings.

 

New export business remained a bright spot in July, rising at a solid rate in the beginning of the second quarter of the current financial year, according to S&P Global. Service providers saw improving demand from clients in the United Arab Emirates, the UK, and the US in particular.

 

This helped the service companies in job creation in the sector during the month after sinking to a six-month low in June. "The uptick was modest, however, as only 6% of firms reported higher payroll numbers and the vast majority (92%) indicated no change," S&P Global said.

 

 

The overall sector's level of confidence slipped to a seven-month low in July, the release said. However, service companies hope for improvement in demand and market conditions as they plan to price competitively and forecast greater inbound tourism.

 

The Composite Purchasing Managers' Index eased to 54.3 in July from 57.1 in June, the slowest pace of growth since March 2022, S&P Global said. "At the composite level, July's upturn was the softest in 53 months."

 

The service economy saw a sharp slowdown in July, while factory production growth ticked marginally higher. "Increases in sales volumes eased in a broad-based manner, with manufacturers outperforming service providers," the release said.  End

 

Reported by Shweta

Edited by Akul Nishant Akhoury

 

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