India Activity Slows to Over Four-Year Low on Iran Risks

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Or sign-in if you have an account.91a455fazelja066z)h]ggmk_media_dl_1.png HSBC(Bloomberg) — India’s economic activity slowed to its weakest pace in more than four years in July as renewed tensions in the Middle East weighed on demand and intensified inflationary pressures, a flash survey by HSBC Holdings Plc showed Friday.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe services purchasing managers’ index dropped to 53.1 this month from 57.4 in June, while the manufacturing purchasing managers’ index fell to 53.9 from 54.2 in the same period. That dragged the composite index to 54.3 in July compared with 57.1 in June, the lowest reading since March 2022.The indexes, reflecting business confidence in the economy, are based on preliminary surveys. The data may be revised when final PMI figures are released next week. A reading above 50 indicates expansion in economic activity, while a print below that indicates contraction.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againRisks to India’s economic outlook have increased as a truce between the US and Iran remains elusive, raising the prospect of prolonged geopolitical tensions and higher energy prices. The Reserve Bank of India said this week that while high-frequency indicators point to resilient demand, renewed uncertainty in the Middle East and deficient monsoon rains remain key threats to growth.With oil prices climbing again, sustained gains could inflate India’s fuel import bill, putting pressure on the rupee and adding to imported inflation for the world’s third-largest oil importer.Firms are increasing inventories and other buffers to guard against persistent supply disruptions stemming from renewed geopolitical tensions, Pranjul Bhandari, chief India economist at HSBC said in a statement.The moderation in growth was centered on the services economy, where expansions in new orders and output eased to their weakest in 53 months, while the manufacturing sector recovered some momentum, the survey showed.That meant businesses raised output prices at a faster pace in an effort to protect margins, Bhandari said. 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