India services output growth slows to 9.8% in May as retail-linked activity cools
Estimated output across 19 services sectors grew 9.8% year on year in May, down from 20.8% in April. Retail trade, road transport, IT and support services softened, while accommodation and food services remained the fastest-growing segment.
India’s services output growth slowed in May, partly due to weaker retail trade, road transport, IT and support services. Accommodation and food remained the fastest-growing category, while economists said broader services momentum should remain resilient through Q1 2026-27.
Why this matters
The slowdown follows a May signal that retail trade grew 13.3% as services momentum broadened and comes as MoSPI sharpens GST-based retail-sales tracking through new surveys.
Footfall is steady, with 516 signals recorded over the past 90 days.