The HSBC India Services PMI slipped to 53.1 in July 2026 from a final reading of 57.4 in June, according to preliminary estimates. This marked the slowest pace of expansion in the services sector since February 2022. Both output and new orders grew more slowly, with the rates of expansion falling sharply from June to their weakest levels in 53 months. In contrast, growth in foreign sales picked up.
Employment rose modestly, partially reversing the decline seen in the previous month. On the cost side, input price inflation accelerated, driven by higher fuel, labour, materials, and transportation expenses. In response, firms raised their selling prices at a faster rate, leading to stronger output price inflation. Looking ahead, business sentiment softened.
