India's Private Sector Growth Slows to 3-Month Low in June Amidst Weak Demand

BENGALURU, - India's private sector expanded at its slowest pace ​in three months in ​June as weaker demand growth weighed on both ​factory and services activity, while business confidence slipped to its lowest level since January, a survey showed.

* HSBC's flash India Composite Purchasing Managers' Index (PMI), ‌compiled by ⁠S&P ⁠Global, fell to 57.4 this month from May's 59.3. A PMI reading ​above 50.0 indicates expansion in activity.

* Overall new orders, a key gauge ​of demand, rose at their slowest pace since March with firms citing competitive pressures and gas shortages as obstacles to securing ​business.

* On the export front, the ⁠picture was ‌mixed as services companies saw slightly faster ​international sales ​growth but manufacturers recorded their weakest rise in ⁠new export orders since March 2023.

* The services PMI ​fell to a 17-month low of 57.3 ​from 59.8 while the manufacturing PMI slipped to a three-month low of 54.5 in June from 55.0 last month.

* The moderation in demand curbed job creation. Employment across the private sector rose only marginally in June - the weakest gain in ‌the current six-month run of expansion - with hiring at both factories and service providers at their ​lowest since December.

* ​Cost pressures eased ⁠for a third straight month, dropping to their lowest level since January. Selling price inflation also cooled, with overall charges rising ​at the weakest pace in six months as some firms refrained from passing on increases amid challenging demand conditions.

* Business confidence slipped below its long-run average in June with sentiment at goods producers dropping to its weakest in nearly four years.