Softer demand, fierce competition and postponed orders slowed services activity, though export orders, employment and profit margins showed some improvement during the month
India's services sector expanded in July, but activity and new business grew at their weakest pace since early 2022, even as exports and hiring remained resilient
HSBC's India Manufacturing PMI fell to 53.5 in July, its lowest level since August 2021, as sales, input purchases and job creation slowed despite resilient export demand
The HSBC India Manufacturing PMI fell from 54.2 in June to 53.5 in July, as slower growth in new orders, purchasing and employment offset stronger export demand
Output, new orders, exports and hiring lose momentum as softer demand and intense competition weigh on factory activity, though the sector remains in expansion territory
The HSBC Flash India Composite PMI Output Index fell to 57.4 in June from 59.3 in May, as demand, hiring and business optimism softened across both key sectors
The Services PMI rose to 59.8 in May from 58.8 in April, signalling the fastest expansion since November as firms reported stronger demand and softer price pressure
Manufacturing activity expanded at its fastest pace in 3 months in May, supported by stronger domestic demand, while input cost inflation remained elevated amid continued geopolitical uncertainties
Input cost inflation remained among the strongest seen in the past four years, driven by higher energy, fuel, material, and transportation costs amid the ongoing conflict in West Asia
India's policy calendar this week is packed with the RBI's June review, FY26 GDP data, India-US trade talks, GST numbers, PMI readings and fuel export levy changes
The RatingDog China General Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, fell to 51.8 in May from 52.2 in April, but was slightly above analysts' forecast of 51.6
India's pvt sector activity remained firmly in expansion territory in May, though growth in new orders, exports, employment and business activity softened marginally, HSBC's flash PMI survey showed
The latest reading pointed to continued expansion across both manufacturing and services, though at a slower pace due to weaker growth in new orders, exports, employment and overall business activity
India's macro calendar will be led by core sector, PMI, bank credit, deposit, and forex reserves data, while PM Modi's Europe visit will keep trade ties in focus
