New Delhi, June 25, 2026: India’s private sector growth slowed to a three-month low in June, reflecting softer demand conditions and a moderation in business confidence, according to the latest Purchasing Managers’ Index (PMI) survey released on Wednesday.
Despite the slowdown, economic activity remained firmly in expansion territory, indicating that the country’s private sector continues to grow, albeit at a slower pace than in previous months. The survey highlighted a decline in the pace of new business growth across both manufacturing and services sectors.
Economists noted that weaker domestic demand and heightened global economic uncertainty contributed to the moderation in growth. While companies continued to report increases in output and employment, the pace of expansion eased compared with earlier months.
The services sector, which has been a key driver of India’s economic growth, recorded slower growth in new orders during June. Manufacturing activity also witnessed a slight moderation as businesses adjusted production levels in response to softer demand conditions.
According to the survey, business confidence fell to its lowest level in several months, with firms expressing caution over future demand prospects and global market conditions. Rising competition and concerns about international economic developments also weighed on sentiment.
However, companies continued to create jobs, reflecting confidence in the long-term outlook of the Indian economy. Employment growth remained positive across both manufacturing and services sectors, although hiring activity slowed compared with previous survey periods.
Input cost pressures remained relatively contained during June, helping businesses manage operational expenses. Lower commodity prices and easing supply chain constraints provided some relief to firms despite ongoing global uncertainties.
Analysts emphasized that India’s economy continues to outperform many major global economies, supported by strong domestic consumption, government infrastructure spending, and investment activity. The latest PMI figures suggest that while growth momentum has moderated, the broader economic expansion remains intact.
Financial markets are expected to closely monitor upcoming economic data for further signs of demand trends and business activity. Policymakers at the Reserve Bank of India are also likely to assess the survey findings as part of their broader evaluation of economic conditions and inflation dynamics.
Experts believe that improvements in monsoon conditions, infrastructure spending, and consumer demand could help support stronger business activity in the second half of the year. For now, the survey indicates that India’s private sector remains resilient despite facing a more challenging operating environment.
As businesses adapt to changing market conditions, the country’s economic fundamentals continue to provide support for sustained long-term growth and investment.
Source: S&P Global PMI, Reuters
Original Report:
https://www.reuters.com/world/india/indias-june-private-sector-growth-slips-three-month-low-demand-confidence-cool-pmi-2026-06-25/
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