India Services PMI Hits 4.5-Year Low

In July 2026, India's private sector growth slowed to its weakest level in over four years, driven by a sharp deceleration in services activity. The HSBC India Composite PMI Output Index fell to 54.3 from 57.1 in June, the lowest since March 2022, while the Services PMI dropped to 53.3 from 57.4, marking a 53-month low. New business orders eased in both domestic and export markets due to fierce competition, fading demand, and order postponements. Manufacturing remained relatively steady, with the Manufacturing PMI slipping slightly to 53.9, but export orders provided support, growing at the fastest pace since March. Companies continued to hire, though modestly, and input cost inflation softened to a six-month low, while selling prices rose at the fastest pace since April. Business confidence weakened to a seven-month low. The data, compiled by WSP Global and released by HSBC, indicates that the strong momentum of the past two years is easing, with services losing steam while manufacturing has yet to accelerate broadly.