New Delhi, July 3 -- India's services sector expanded at a slower pace in June as softer domestic demand, weaker client interest and a pause in hiring weighed on business activity, according to the HSBC India Services Purchasing Managers' Index (PMI) survey released on Friday.
The seasonally adjusted HSBC India Services PMI Business Activity Index fell to 57.4 in June from 59.8 in May. While the reading remained well above the 50-mark that separates expansion from contraction, it marked the weakest pace of growth in the sector in 17 months.
The moderation was largely driven by the slowest rise in new business inflows in more than two-and-a-half years. Survey respondents said competitive pricing, stronger e-commerce demand, higher customer...