India’s services sector expanded for another month in June 2026, but growth slowed to a 17-month low, reflecting softer domestic demand and weaker growth in new business orders.

BulletsIn

• India’s Services Purchasing Managers’ Index (PMI) declined to 57.4 in June 2026.
• The PMI had stood at 59.8 in May 2026.
• This marks the lowest Services PMI reading in 17 months.
• A PMI reading above 50 indicates expansion in business activity.
• A reading below 50 signals contraction in the sector.
• Despite the decline, the services sector continued to remain in expansion territory.
• Growth slowed mainly due to weaker domestic demand.
• New business orders recorded their slowest growth in over two-and-a-half years.
• The moderation suggests softer market conditions across the services economy.
• Businesses reported slower growth in overall activity compared to previous months.
• Domestic demand remained weaker than earlier months, affecting overall momentum.
• The services sector remains a major contributor to India’s GDP and employment.
• PMI is based on surveys of purchasing managers across businesses.
• The index reflects trends in business activity, new orders, employment, output and future expectations.
• The June data indicates that India’s services sector is growing, but at a slower pace than before.