- India's private-sector PMI rose to 54.6 in August from 54.3 in July, indicating expansion
- Services PMI increased to 54.5, reaching a 53-month high and boosting overall growth
- Manufacturing PMI fell to 52.9, its lowest since August 2021, with slower output growth
India's private-sector activity improved marginally in August as stronger services growth offset a further loss of momentum in manufacturing. The HSBC Flash India Composite PMI rose to 54.6 from 54.3 in July, when it had hit its lowest level in more than four years.
The latest reading remained above 50, which separates expansion from contraction, but stayed well below the recent average of about 60. The index also came in above the 54.3 median forecast in a Reuters poll.
The services sector led the improvement. The HSBC Flash India Services PMI climbed to 54.5 in August from 53.3 in July, when it had fallen to a 53-month low.
PMI Snapshot
Composite PMI: 54.6 in August vs 54.3 in July
Services PMI: 54.5 vs 53.3
Manufacturing PMI: 52.9 vs 53.5
Manufacturing: Lowest reading since August 2021
Manufacturing employment: Fell for the first time in 2.5 years
Services hiring: Reached a 15-month high
Manufacturing, in contrast, weakened for a third consecutive month. The sector's PMI dropped to 52.9 from 53.5, marking its lowest reading since August 2021. Output and new orders in manufacturing also recorded their slowest growth in five years.
The data showed that demand remained under pressure despite an improvement in overall new orders. Companies pointed to difficult market conditions, stronger competition and lower customer requirements as factors limiting growth. Export-order growth also slowed from the previous month.
Employment trends were mixed. Factory employment declined for the first time in two and a half years, while services hiring reached a 15-month high. This helped push overall employment growth to its joint-fastest pace since June 2025.
Cost pressures eased during the month, with overall input-price growth falling to a seven-month low. Companies, however, raised selling prices at the fastest pace since April as they sought to recover higher costs from customers.
Business confidence for the coming year increased slightly in August. The level of optimism remained below that seen earlier in 2026.
The August data therefore pointed to a continued expansion in India's private sector, but with services providing the main support as manufacturing activity weakened.
(With inputs from agencies.)
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