EconomyFriday, 3 July 2026·The Hindu - Economy
India services PMI falls to 17-month low of 57.4 in June 2026 as domestic demand weakens
HSBC India Services PMI eased to 57.4 in June 2026, the slowest expansion since January 2025, as domestic demand softened.
Key highlights
Direct fact
In June 2026, the HSBC India Services PMI Business Activity Index fell to 57.4 from 59.8 in May, marking a 17-month low and the slowest upturn since January 2025.
Key specifics
- The services PMI stayed above the neutral 50-mark in June 2026, indicating expansion.
- New order intakes recorded the weakest growth in over two-and-a-half years, according to the survey.
- New export orders rose at their fastest pace in 3 months, with demand from Australia, Germany, Singapore, the UAE and the U.S.
- India’s Composite PMI Output Index fell to 57.1 in June 2026 from 59.3 in May.
- Business confidence slipped to a 5-month low, while hiring was largely paused in June 2026.
Exam lens
Economy and indices question type: PMI interpretation, services PMI 57.4, composite PMI 57.1, neutral threshold 50; TNPSC may ask which indicator shows expansion and which countries supported export orders.