Archive · 22 Aug 2026
India’s Private Sector Growth Recovers Slightly as Services Strengthen
India’s private businesses grew a little faster in August than in July.
The main reason was that service companies, such as businesses that provide services, received more work.
Factories grew more slowly than they had in previous months.
The overall growth score rose from 54.3 to 54.6.
Companies received more export orders, including from the United States, Germany, China, Singapore, and Japan.
Businesses hired more workers, especially in services.
Manufacturing companies reduced their staffing for the first time in two and a half years.
Companies also charged customers more for their products and services.
Business leaders became slightly more hopeful about the next year.
India’s HSBC Flash Composite PMI rose to 54.6 in August from 54.3 in July.
Services activity improved, with the Flash Services PMI climbing to 54.5 from 53.3.
Manufacturing PMI fell to 52.9, marking five-year lows for production and new-order growth.
Private-sector employment growth accelerated, led mainly by services, while manufacturing staffing declined.
Companies raised selling prices faster despite the slowest input-cost inflation increase in seven months.
- Who
- India’s private-sector companies, including service providers and manufacturers, surveyed by S&P Global.
- What
- Private-sector growth improved slightly in August as stronger services activity offset weaker manufacturing growth.
- When
- August, compared with July.
- Where
- India.
- Why
- Services growth re-accelerated, while manufacturing lost momentum amid challenging market conditions, competitive pressures, and lower customer requirements.
- Composite PMI
- The HSBC Flash India Composite PMI increased to 54.6 in August from 54.3 in July.
- Services PMI
- The Flash Services PMI rose to 54.5 from 53.3.
- Manufacturing PMI
- Manufacturing PMI declined to 52.9 from 53.5, its lowest level in five years.
- Employment
- Private-sector job creation accelerated to the joint-fastest rate since June 2025, alongside April 2026.
- Export orders
- Export orders increased at a solid pace, although growth eased in both sectors.
- Prices
- Selling prices rose at their fastest rate since April, while input-cost inflation increased at its slowest rate in seven months.
- Business expectations
- Companies’ expectations for the coming year edged higher in August.