New Delhi, Aug. 5 -- India's service economy fell to 53.3 in July from 57.4 in June, marking the weakest growth rate in close to four-and-a-half years. According to the HSBC India Services PMI index, the country's service economy continued to expand, but business activity rose at the softest pace in 53 months amid softer demand, competitive pressures, and a drop in customer enquiries.

New business inflows grew at the slowest pace since February 2022. Panellists noted that growth was constrained by fierce competition, fading demand, softer market conditions, and order postponements. Out of the four service sub-sectors monitored, only Finance & Insurance recorded faster rates of expansion in output and sales.

Commenting on the survey find...