The HSBC India Services PMI for July 2026 was revised slightly upward to 53.3 from the preliminary estimate of 53.1, but remained well below June’s final reading of 57.4. The latest figure still points to the weakest expansion in services activity since early 2022, as growth in both output and new orders slowed amid softer demand, rising competition, and fewer new enquiries.
Inflows of new business increased at their slowest pace since February 2022. By contrast, export demand was a notable bright spot, with new export orders accelerating on the back of stronger demand from the UAE, the UK, and the US.
Employment conditions improved modestly. Service providers expanded their workforces at a quicker rate after job creation had eased to a six‑month low in June.
On the price front, input cost inflation eased to its lowest level since January. However, firms raised their selling prices at the fastest pace since April, resulting in higher output price inflation.
Finally, business confidence softened to a seven‑month low, even though firms continued to anticipate better demand and improved market conditions in the months ahead.
