Private sector activity expands at slowest pace in over three years in July

New Delhi, July 24 -- The private sector activity in India expanded at its slowest pace in more than three years in July. This is due to the growth in output and new orders moderated, while inflationary pressures intensified, according to the HSBC Flash India PMI released by S&P Global.

The HSBC Flash India Composite PMI Output Index fell to 54.3 in July from 57.1 in June, marking the weakest expansion in private sector activity since March 2022.

It said the slowdown is due to increasingly challenging market conditions, competitive pressures, order cancellations, reduced client enquiries and shortages of key raw materials. New orders continued to grow but at their weakest pace in nearly four-and-a-half years.

The moderation was driven by...