India’s private sector activity rose slightly in August, recovering from an over four-year low as services growth rebounded.
The HSBC Flash India Composite PMI, compiled by S&P Global, climbed to 54.6 in August from 54.3 in July, above a Reuters poll median estimate of 54.3.
Services firms led the improvement, reporting a modest re-acceleration in business activity and new orders after their weakest growth in 53 months in July.
Manufacturing growth kept weakening, with the HSBC Flash India Manufacturing PMI falling for a third consecutive month to 52.9, its weakest level in five years.
The composite index remained above the 50-mark separating growth from contraction, though it stayed below the roughly 60 average recorded earlier in 2026.
The data reflects a two-speed economy, with services supporting overall momentum even as factory activity continues to decelerate heading into the final months of the year.
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.
Input cost inflation eased to its softest level in seven months, giving companies some relief on the pricing front even as overall demand growth remained modest.
Business sentiment for the year ahead improved across both the manufacturing and services sectors compared with July, according to the survey data.
Photo by Gnoeee, Wikimedia Commons, CC BY-SA 4.0
