India Services Growth Revised Slightly Higher

2026-08-05 05:37 By Erika Ordonez 1 min. read

The HSBC India Services PMI was revised slightly higher to 53.3 in July 2026 from the preliminary estimate of 53.1 but remained well below June's final reading of 57.4.

Still, the latest reading signaled the weakest expansion in business activity since early 2022, as output and new order growth slowed amid softer demand, competitive pressures, and fewer new enquiries.

New business inflows rose at the weakest pace since February 2022.

However, new export orders remained a bright spot, accelerating on stronger demand from the UAE, UK, and US.

Employment improved modestly, with service providers adding to payrolls at a faster pace after job creation slowed to a six-month low in June.

On the price front, input cost inflation eased to its lowest since January, though selling charges rose at the fastest pace since April, pushing output price inflation higher.

Lastly, business confidence weakened to a seven-month low despite expectations of improved demand and market conditions.



News Stream
India Services Growth Revised Slightly Higher
The HSBC India Services PMI was revised slightly higher to 53.3 in July 2026 from the preliminary estimate of 53.1 but remained well below June's final reading of 57.4. Still, the latest reading signaled the weakest expansion in business activity since early 2022, as output and new order growth slowed amid softer demand, competitive pressures, and fewer new enquiries. New business inflows rose at the weakest pace since February 2022. However, new export orders remained a bright spot, accelerating on stronger demand from the UAE, UK, and US. Employment improved modestly, with service providers adding to payrolls at a faster pace after job creation slowed to a six-month low in June. On the price front, input cost inflation eased to its lowest since January, though selling charges rose at the fastest pace since April, pushing output price inflation higher. Lastly, business confidence weakened to a seven-month low despite expectations of improved demand and market conditions.
2026-08-05
India Services Sector Growth Weakest Since 2022
The HSBC India Services PMI declined to 53.1 in July 2026 from a final 57.4 in the previous month, preliminary estimates showed. It was the softest expansion in the services sector since February 2022, as growth in both output and new orders slowed, with the rates of expansion retreating sharply from June to their weakest levels in 53 months. However, foreign sales growth accelerated. Employment increased modestly after declining in the previous month. On the price front, input cost inflation accelerated, driven by higher fuel, labour, materials, and transportation costs. Meanwhile, output price inflation accelerated due to higher input costs. Looking ahead, business sentiment weakened.
2026-07-24
India Services PMI Revised Slightly Upward
The HSBC India Services PMI was revised slightly higher to 57.4 in June 2026 from the preliminary estimate of 57.3 but remained below May's final six-month high of 58.9. Still, the latest reading signaled the softest growth since January 2025 due to a slower increase in output, while new order growth eased to its slowest pace in over two and a half years. However, foreign sales growth accelerated to the strongest pace in three months. Employment declined after solid job creation in April and May. On the price front, input costs rose, driven by higher electricity, food, fuel, and transportation costs. However, input cost inflation eased to a five-month low. Meanwhile, output price inflation remained slight, below its long-run average and the weakest since November 2025. Looking ahead, business sentiment faded.
2026-07-03