The HSBC India Services PMI slipped to 57.3 in June 2026, down from May’s six-month high of 58.9, according to preliminary estimates. This marked the slowest expansion in the services sector since January 2025, as rising costs and softening demand tempered the latest increase in business activity.
Growth in new orders weakened, with some firms reporting difficulties in securing fresh business. Competitive pressures, higher fuel prices, and gas shortages were frequently cited as key obstacles. In contrast, growth in foreign sales continued to strengthen.
Volumes of outstanding business were broadly unchanged. Employment continued to rise, but at the slowest pace since December 2025.
On the price front, both input cost and output charge inflation eased, reflecting subdued demand and intense competition. Despite these headwinds, overall business sentiment remained positive.
