India Services PMI New business index at 4.5 year low even as new export orders remain strong

Economics Research 5 August 2026 | 3:56PM IST

India: Services PMI: New business index at 4.5-year low even as new export orders remain strong

Bottom line: The seasonally adjusted HSBC India services PMI declined to a 4.5-year Santanu Sengupta | low of 53.3 in July from 57.4 in June, but remained well in expansion. The new Goldman Sachs India SPL business index declined to a 4.5-year low of 52.5 in July from 57.0 in June, as firms Arjun Varma noted weaker demand and order postponements (except in finance and insurance | services). However, the employment index improved in July from a six-month low in Goldman Sachs India SPL

June. New export orders remained strong, with firms reporting gains across clients from UAE, UK and the US. Among the price related sub-indices, the pace of increase in the input price index eased to a six-month low, while the output price index increased to a three-month high.

HSBC India services PMI: 53.3 in July vs. 57.4 in June

n The seasonally adjusted HSBC India services PMI declined to a 4.5-year low of 53.3 in July from 57.4 in June, but remained in expansion. This takes the composite PMI (services PMI and manufacturing PMI combined) to 54.3 in July from 57.1 in June (Exhibit 1). n Among the six major sub-indices, on a seasonally adjusted basis, the new business index declined to a 54-month low of 52.5 in July from 57.0 in June, but remained in expansion. Firms noted weaker demand and order postponements as reasons for a weaker growth in new business. Among sectors, only finance and insurance services witnessed an improvement in output and sales, as per the press release. That said, the employment index improved to 52.4 from a six-month low of 50.3 in June. n New export orders edged down to 53.7 (vs. 54.0 in June), but remained strong. Firms reported business gains across clients from UAE, UK and the US (Exhibit 1). n In terms of price related sub-indices, firms reported higher fuel, labour and transportation costs, however the pace of increase in the input price index slightly eased to 53.3 from 53.8 in June. Among sectors, Consumer Services firms witnessed the fastest increase in input costs. The output price index increased to a three-month high of 53.0 from 51.0 in June, with Real Estate and Business Services firms seeing the highest increase (Exhibit 2).

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Exhibit 1: July services PMI declined to a 4.5-year low due Exhibit 2: The input price index declined, while the output to lower new business gains; however, new export orders price index increased in July remained strong

Index (50 = No Change) Index (50 = No Change) Index (50 = No Change) Index (50 = No Change) 65 65 65 65 Services PMI: 60 60 Prices charged 60 Input prices 60 55 55

Services PMI: 45 45 Headline 50 50 Employment 40 40 New export orders

Source: Haver Analytics Source: Haver Analytics