India’s private sector growth slumped to over four-year low in July, PMI shows

BENGALURU, July 24 (Reuters) – India’s private sector growth skidded to its weakest in over four years in July as a sharp slowdown in services constrained overall ​expansion even though rising export orders and hiring ‌offered limited support, a survey showed. • HSBC’s flash India Composite Purchasing Managers’ Index (PMI), compiled by S&P Global, fell to 54.3 in July from June’s 57.1, confounding a Reuters poll median forecast for a jump ‌to ​57.7. However the index remained above ⁠the 50-mark separating growth from ⁠contraction. • Export orders offered a brighter spot with international sales growing at the fastest pace since March. • Among sectors, services was the biggest lag. The business activity ​index fell to 53.1 from June’s 57.4 – its weakest reading since February 2022 – weighed by challenging market conditions, order ⁠cancellations and reduced client enquiries. • ⁠Manufacturing was steadier but not strong enough to ​change the broader trend. The factory activity index eased to ​a four-month low of 53.9 from 54.2. Output and ‌new orders continued to expand at a stronger pace helped by robust demand from overseas markets. • July’s surveys showed the unusually strong momentum of the past two years is ⁠beginning to fade. A sharper slowdown in services, which have powered much of India’s recent growth, leaves the economy increasingly reliant on ⁠manufacturing, a sector ‌that has yet to show signs of ⁠accelerating. • Overall business outlook remained positive with ​firms ‌continuing to hire for a seventh consecutive month ​in anticipation ⁠of demand holding up. • Companies were hit by input costs rising at a quicker pace due to higher fuel, labour, materials and transportation expenses, passing some of them to clients. Output price inflation reached a three-month high. (Reporting by Anant ChandakEditing ​by Shri Navaratnam)