India’s services PMI drops to 17-month low of 57.4 in June 2026

📌 Summary:

• The HSBC India Services PMI Business Activity Index eased to 57.4 in June 2026, down from 59.8 in May — its lowest 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
• It marked the slowest upturn since January 2025, signalling softening demand in the services sector

🎯 UPSC Relevance: GS3 Indian Economy — PMI as a high-frequency indicator of economic momentum; services sector’s dominant share in GDP and the significance of demand-side softening.

📝 Prelims Facts:

• PMI (Purchasing Managers’ Index) above 50 indicates expansion; below 50 indicates contraction
• India’s Services PMI is compiled by HSBC (with S&P Global) via a survey of purchasing managers
• June 2026 reading: 57.4 (vs 59.8 in May); lowest since January 2025

🔑 Key Term: Purchasing Managers’ Index (PMI) — a diffusion index based on business surveys where a value above 50 signals month-on-month expansion and below 50 signals contraction.