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June sees slower growth in India’s services sector; PMI at 57.4
Jul-03-2026

India’s services sector remained in expansionary territory in the month of June but eased to the lowest reading in 17 months, as challenging market conditions and reduced client interest for some services stymied growth of total sales and output. Hence, hiring activity was broadly stagnant and business confidence faded. 

According to the survey report, the seasonally adjusted HSBC India Services PMI Business Activity Index fell to 57.4 in June from 59.8 in May. Further, the HSBC India Composite PMI Output Index -- which measures both manufacturing and services -- also eased to 57.1 in June as against 59.3 in May. Further, Indian services firms foresee output growth in the coming 12 months, but the overall level of positive sentiment fell to a five-month low and was below the historical trend.

The report noted that one area of strength seen in June was exports, with firms seeing the strongest rise for three months. Demand from clients in Australia, Belgium, Canada, Germany, Malaysia, Nepal, Oman, Qatar, Singapore, the UAE and the US improved. Price pressures also continued to cool, with both input cost and output charge inflation moderating as geopolitical disruptions in the Middle East began to subside.


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