India's services PMI drops to 17-month low of 57.4 in June 2026 as demand softens

📌 Summary:

• The HSBC India Services PMI Business Activity Index fell to 57.4 in June 2026 from 59.8 in May — its lowest level in 17 months
• The slowdown was driven by the weakest growth in new order intakes in over two-and-a-half years
• The reading stayed comfortably above the neutral 50-mark (which separates expansion from contraction) and above its long-run average, so services are still expanding, just more slowly
• It marked the slowest upturn since January 2025, signalling softening demand momentum in India's largest GDP-contributing sector

🎯 UPSC Relevance: GS3 Economy — services-sector health, high-frequency growth indicators, demand conditions

📝 Prelims Facts:

• A PMI reading above 50 indicates expansion; below 50 indicates contraction
• The India PMI is compiled by S&P Global and sponsored by HSBC
• Services is the largest contributor to India's Gross Value Added (~55%)

🔑 Key Term: Purchasing Managers' Index (PMI) — a survey-based leading indicator of business activity where 50 is the expansion/contraction threshold.