India’s services sector growth eased to a five-month low in October. The HSBC India Services PMI fell to 58.9 from 60.9 in September, according to a survey by S&P Global.

A reading above 50 signals expansion. The index has stayed above that mark for 51 straight months. But the slowdown points to emerging headwinds for Asia’s third-largest economy.

Survey participants blamed heavy rains and stronger competition for the moderation. New business grew at the weakest pace in five months. International demand also softened, with export orders rising at the slowest rate in seven months.

Business confidence slipped to a three-month low. Hiring stayed muted, with job creation at its joint-softest pace in 18 months. The one bright spot was costs: input prices rose at the slowest rate since August 2024, helped by lower GST rates.

The economy is expected to grow 6.7 percent this fiscal year. But the survey shows rain and competition are testing the services sector’s strong run.