India's services growth slows to 4½-year low in July as demand weakens
Economic Times 1 hr ago·5 Aug 2026, 7:19 pm
India's services sector expanded at its slowest pace in over four years in July, according to the latest PMI data. The index fell to 51.2, indicating a marginal increase in activity but a significant slowdown from previous months. This deceleration was driven by weaker demand for new business both domestically and internationally. The broader manufacturing sector also lost momentum, dragging down the composite PMI reading.
For investors, this report signals a cooling in economic activity, which could dampen corporate earnings in the near term. While the services sector remains optimistic about future growth, the current slowdown suggests a period of consolidation. Investors should monitor upcoming earnings reports to see how companies are managing this demand weakness and whether the hiring rebound continues to support the labor market.
Excerpt from Economic Times
India's services sector expanded slowly in July, reaching a 53-month low. New business inflows moderated across domestic and international markets, impacting growth. Manufacturing activity also lost momentum, contributing to a composite PMI decline. Services firms remained optimistic about future business despite…Read the original at Economic Times
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