Photo by Gnoeee, Wikimedia Commons, CC BY-SA 4.0
India’s private sector activity rises to 54.6 in August, services lead recovery
India’s flash composite PMI rose to 54.6 in August from a four-year low of 54.3 in July, as a rebound in services activity offset the weakest manufacturing growth in five years.
India’s private sector activity rose slightly in August, recovering from an over four-year low as services growth staged a comeback.
The HSBC Flash India Composite PMI, compiled by S&P Global, climbed to 54.6 in August from 54.3 in July, beating a Reuters poll median estimate of 54.3.
Services businesses drove the pickup, reporting a modest re-acceleration in activity and new orders after their weakest growth in 53 months the previous month.
Manufacturing activity kept slowing, with the HSBC Flash India Manufacturing PMI falling for a third straight month to 52.9, its weakest reading in five years.
The composite index stayed above the 50-point mark separating expansion from contraction, though it remained below the roughly 60 average seen earlier this year.
The numbers point to services cushioning India’s overall growth even as manufacturing activity continues to cool heading into the final months of 2026.
The Reuters poll of economists had pegged the composite PMI at 54.3 for August, meaning the actual reading of 54.6 came in slightly above expectations.
The PMI survey is compiled by S&P Global from responses submitted by private-sector companies each month, and is closely watched as an early indicator of economic momentum ahead of official government data.
July’s composite reading of 54.3 was itself the weakest in over four years, making August’s modest uptick to 54.6 a break from what had been a multi-month slowing trend.
The HSBC Flash India Manufacturing PMI fell for a third straight month to 52.9, its weakest reading in five years, even as it stayed above the 50-mark that separates growth from contraction.
Job creation across India’s private sector accelerated to its fastest pace since June 2025, with the services sector leading the pickup in hiring.
Export orders continued to rise at a solid pace in August, with growth reported from markets including the United States, Germany, China, Singapore and Japan.
Photo by Gnoeee, Wikimedia Commons, CC BY-SA 4.0