India's Services Sector Hits Speed Bump: PMI Drops to 56.5 Amid Cooling Demand

India's dominant services sector witnessed its slowest growth in over two years as the HSBC Services PMI fell to 56.5 in January from December's 59.3. Despite the slowdown, the sector marked its 42nd consecutive month of expansion, with robust job creation reaching near-record levels. While domestic demand cooled, international sales showed promising growth, with increased business from Asia, Europe, and the Middle East. The sector faces challenges from intense competition and rising input costs, though business confidence remains historically strong.

Sources: S&P Global PMI Data, HSBC India Services PMI Report