India's July services sector growth slides to over four-year low as demand wilts: PMI

Bengaluru: Growth in India's dominant services sector slumped ​to its weakest ​pace in over four years in July as ​demand was weighed down by fierce competition and fading client appetite, a survey showed.

* HSBC's India Services Purchasing Managers' Index (PMI), compiled by ‌S&P Global, ⁠fell ⁠sharply to 53.3 in July from June's 57.4 but was slightly ​higher than a preliminary estimate of 53.1. PMI readings above 50.0 ​signal expansion in activity.

* New business - a key gauge for demand - rose only moderately, posting the softest expansion ​in close to four-and-a-half years.


* International demand ⁠also softened ‌slightly from the previous month despite ​export orders ​outpacing growth in overall new business.

* Hiring picked ⁠up from a six-month low recorded in ​June, marking a seventh month of job creation. ​But the improvement was modest with a majority of firms reporting no change to headcount and only a small fraction adding staff.

* Input cost inflation eased for a fourth consecutive month, falling to its lowest ‌since January. However, selling prices rose at their fastest pace in three months as firms ​passed additional cost ​burdens to ⁠clients.

* Business confidence slipped to a seven-month low, marking its fourth monthly decline, even though firms cited hopes of stronger ​demand and increased tourism.

* India's Composite PMI, which measures activity across both services and manufacturing, fell to 54.3 in July from 57.1 - its weakest reading since March 2022, pointing to a broad-based loss of momentum across India's private sector.