India's services PMI falls to 53.1, weakest since early 2022
India's services sector just had its slowest growth in over four years.
The Services PMI dropped to 53.1 in July 2026, way down from May's 59.8 and the lowest since early 2022.
Even when you look at both services and manufacturing together, overall business growth is at its weakest in more than four years.
Costs rise as companies hike prices
Fewer client inquiries, more order cancelations, and rising costs (think fuel, labor, and transport) are making things tough for businesses.
To keep up with these expenses, companies have hiked prices at their fastest rate in three months.
Still, spending stayed strong: GST collections jumped nearly 14% year-over-year in June and UPI payments were over ₹28 lakh crore across a whopping more than 22 billion transactions.
Economists say it's mostly affordability pressures, not a total drop in demand, slowing things down.
On the bright side, overseas orders picked up and hiring stayed steady even as new business growth cooled off from May's high point.