Retail trade output grew 18.5% in July as 10 service sub-sectors posted double-digit gains
MoSPI’s Index of Services Production showed year-on-year growth across 17 of 19 sub-sectors in the trial index. Retail trade rose 18.5%; air transport and repair services contracted.
The development
MoSPI reported Retail Trade growth of 18.5 per cent in July 2026, as 10 out of 19 service sub-sectors recorded double-digit growth year on year. The trial ISP showed 17 out of 19 sub-sectors grew, while Air transport and Repair services contracted.
The numbers
- 10 out of 19
- 17 out of 19
- July 2026
- 18.5 per cent
- 20.9 per cent
Why it matters to operators and investors
Retail trade output rose 18.5% year over year in July, a strong sector-level signal to review capacity and inventory plans while validating demand against your own sales data.
What to watch next
- The next MoSPI services-production release and revisions to the trial index
- Monthly GST collections and digital-payment activity as cross-checks on transaction momentum
- Retailer earnings commentary on like-for-like sales, footfall, average ticket size and regional mix
- Inventory growth, discounting and gross margins for signs that supply is outrunning demand
- Consumer inflation, wage costs and rents, which could erode the benefit of higher volumes
The counter-case
The 18.5% year-on-year rise may overstate underlying momentum: a weak July comparison base, rebound effects, or index methodology could account for much of the gain. One month of growth in a trial index does not establish a durable trend or translate directly into retailer sales, profits, or listed-company performance.