Mumbai, Aug. 5 -- India's services sector continued to expand in July, but growth slowed sharply, according to the latest HSBC India Services PMI. The Business Activity Index fell to 53.3 in July from 57.4 in June, marking the weakest pace of expansion in 53 months, though remaining above the neutral 50.0 level.

New business inflows also grew at their slowest rate since February 2022, as firms reported softer demand, intense competition, fewer enquiries and delayed orders. However, export demand remained strong, with companies citing increased business from the UAE, UK and US. Among major segments, only Finance & Insurance recorded faster growth in output and sales.

Employment growth improved from June's six-month low, although hiring r...