New Delhi, July 3: India’s services sector recorded a slower pace of expansion in June, with the HSBC India Services PMI declining to 57.4 from 59.8 in May, indicating easing momentum in domestic demand.
The latest reading marks the weakest growth in services activity in 17 months, although it remains above the 50-point mark that separates expansion from contraction.
The moderation was mainly driven by the slowest increase in new orders in over two-and-a-half years. While some firms benefited from stronger e-commerce activity, tourism demand, and competitive pricing, others reported weaker client interest and challenging market conditions.
Employment levels remained largely unchanged during the month, suggesting cautious hiring trends among service providers. However, export demand showed relative strength, with new overseas orders rising at the fastest pace in three months.
Economists say the data points to a cooling in domestic demand, even as overall sector activity continues to expand at a healthy level.
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