India’s services sector expansion slowed to its weakest pace in 17 months in June, driven by a sharp pullback in domestic demand.
The latest Purchasing Managers’ Index (PMI) data reveals that new order intakes contracted at the slowest rate in over two and a half years, indicating that businesses are facing significant headwinds from reduced client interest.
The deterioration in services activity suggests that the Indian economy is losing steam, with total sales and output growth stymied by challenging market conditions.
This softening comes at a critical time for global growth narratives, as investors weigh diverging signals from major emerging and developed markets.
The data adds to a complex global macro picture.
While China’s official manufacturing PMI rose to 50.3 in June, signaling a return to growth after stagnation, private sector activity in the euro zone contracted for a third consecutive month.