New Delhi, June 23 -- India's private sector activity expanded at a slower pace in June as a cooling demand for goods and services restricted overall production levels and curbed hiring across industries.

According to the HSBC India PMI report released on Tuesday, the HSBC Flash India PMI Composite Output Index dropped from 59.3 in May to a preliminary reading of 57.4 in June. The index, which measures the combined month-on-month output changes in both the manufacturing and service sectors, still signalled a sharp expansion, but the rate of growth was the weakest recorded since March.

At the same time, the HSBC Flash India Manufacturing PMI edged down to a three-month low of 54.5 in June, compared to 55.0 in May.

Pranjul Bhandari, Chie...