India's services PMI eases to 17-month low

India's service economy remained firmly inside expansion territory, but the PMI results for June showed a loss of momentum as challenging market conditions and reduced client interest for some services reportedly stymied growth of total sales and output, data showed. Hence, hiring activity was broadly stagnant and business confidence faded. Encouragingly, new export orders rose at the fastest pace in three months, while easing cost pressures curbed charge inflation. Registering 57.4 in June, the seasonally adjusted HSBC India Services PMI Business Activity Index based on a single question asking how the level of business activity compares with the situation the month before was comfortably above both the neutral mark of 50.0 and its long-run average, to indicate a historically strong rate of expansion. Falling from 59.8 in May, however, the latest figure showed the weakest upturn in 17 months.

 

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