India Services Growth Weakest Since February 2022

(RTTNews) - India's services activity expanded at the weakest pace in nearly four-and-a-half years amid slower rises in output and new orders, final data compiled by S&P Global showed on Wednesday.

The seasonally adjusted HSBC India Services PMI dropped to 53.3 in July from 57.4 in June. Nonetheless, a score above 50.0 indicates expansion. The flash score was 53.1.

The slowdown in growth was driven by fierce competition, fading demand, softer market conditions, and order postponements, the survey said. New orders grew at a moderated pace that was the slowest since February 2022.

Meanwhile, new export orders increased at a solid rate in July, linked to improving demand from clients in the UAE, the UK, and the US in particular. Service providers raised their employment level slightly after sinking to a 6-month low in June.

On the price front, input prices rose further across the Indian service economy amid higher costs for fuel, labor, material, technology, and transportation. However, the rate of inflation eased to a 6-month low. On the other hand, selling prices rose at the quickest pace since April.

The composite output index decreased to 54.3 in July from 57.1 in June, indicating the weakest expansion in the Indian private sector since March 2022.