India’s services economy stayed in expansion territory during June but lost momentum due to softer demand and tougher market conditions, according to a private survey released on Friday. The HSBC India Services PMI, compiled by S&P Global, dropped to 57.4 from 59.8 in May, marking the slowest growth in 17 months. The figure remained above the long-term average of 54.4 and the neutral 50 mark. New orders grew at the weakest pace in over two and a half years, while output also moderated. Hiring stayed largely flat and business confidence eased to a five-month low. Export orders rose at the fastest rate in three months, supported by demand from clients in several countries including Australia, the US and Germany. Input cost inflation cooled to a five-month low as prices for electricity, fuel and transport rose at a moderate pace. The composite PMI for private sector activity fell to 57.1 from 59.3, reflecting slower growth in both services and manufacturing.
