New Delhi, July 24 -- India's private sector activity expanded at its slowest pace in more than four years in July as a sharp moderation in the services sector weighed on overall business activity, even as manufacturing output remained resilient, export demand strengthened and inflationary pressures intensified, according to the HSBC Flash India PMI released on Friday.

The HSBC Flash India Composite PMI Output Index fell to 54.3 in July from 57.1 in June, signalling the slowest expansion in private sector activity since March 2022. While the index remained above the 50-mark separating expansion from contraction, it pointed to a significant loss of momentum at the start of the second quarter of FY27.

The moderation was led by the service...