July services sector growth tanks to 4 year low
Live Events as a Reliable and Trusted News Source Addas a Reliable and Trusted News Source Add Now! (You can now subscribe to our (You
Live Events as a Reliable and Trusted News Source Addas a Reliable and Trusted News Source Add Now! (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Bengaluru: Growth in India's dominant services sector slumped to its weakest pace in over four years in July as demand was weighed down by fierce competition and fading client appetite, a survey showed.* HSBC's India Services Purchasing Managers' Index (PMI), compiled by S&P Global, fell sharply to 53.3 in July from June's 57.4 but was slightly higher than a preliminary estimate of 53.1.
PMI readings above 50.0 signal expansion in activity.* New business - a key gauge for demand - rose only moderately, posting the softest expansion in close to four-and-a-half years.* International demand also softened slightly from the previous month despite export orders outpacing growth in overall new business.* Hiring picked up from a si month low recorded in June, marking a
seventh month of job creation. But the improvement was modest with a majority of firms reporting no change to headcount and only a small fraction adding staff.* Input cost inflation eased for a fourth consecutive month, falling to its lowest since January. However, selling prices rose at their fastest pace in three months as firms passed additional cost burdens to
clients.* Business confidence slipped to a seven-month low, marking its fourth monthly decline, even though firms cited hopes of stronger demand and increased tourism.* India's Composite PMI, which measures activity across both services and manufacturing, fell to 54.3 in July from 57.1 - its weakest reading since March 2022, pointing to a broad-based loss of momentum across India's private sector.
The BriefWire