Mumbai, June 23 -- India's private sector continued to expand in June, but growth slowed as demand weakened and hiring activity moderated, according to the latest HSBC Flash PMI data.

The HSBC Flash India PMI Composite Output Index fell to 57.4 in June from 59.3 in May, indicating a strong expansion in business activity but at the slowest pace since March. Growth eased across both manufacturing and services, with expansion slowing to two-month and 17-month lows, respectively.

New orders continued to rise strongly, although growth slowed to a three-month low. Businesses cited softer demand, competitive pressures, rising fuel prices and gas shortages as factors affecting new business generation. Export performance was mixed, with stronger...