Archive · 21 Aug 2026
India Private-Sector Growth Recovers as Services Offset Manufacturing Slowdown
India’s private businesses grew slightly faster in August than in July.
The overall PMI score was 54.6, and a score above 50 means activity is growing.
Service businesses improved and helped support the whole private sector.
Factories also grew, but their growth was the weakest in five years.
New orders increased a little, although growth was slower than in many recent years.
Service companies hired more workers to meet demand.
Factories reduced their staffing for the first time in about two-and-a-half years.
Business costs rose more slowly, but companies raised their prices faster.
Businesses became a little more hopeful about the year ahead.
The HSBC Flash India Composite PMI rose to 54.6 in August from 54.3 in July.
Services activity recovered, with the Services PMI increasing to 54.5 from 53.3.
Manufacturing continued expanding but slowed to a five-year low, with its PMI falling to 52.9 from 53.5.
Private-sector job creation accelerated, driven mainly by services, while manufacturing employment declined for the first time in about two-and-a-half years.
Input-cost inflation eased to a seven-month low, but companies increased selling prices faster to pass on costs.
- Who
- Indian private-sector companies, including services firms and manufacturers, surveyed by S&P Global for HSBC.
- What
- The HSBC Flash India Composite PMI rose to 54.6 in August as stronger services growth offset weaker manufacturing growth.
- When
- August; the flash survey was released on Friday.
- Where
- India, with export orders reported from the United States, Germany, China, Singapore and Japan.
- Why
- A recovery in services activity and new orders supported overall growth, while manufacturing momentum weakened.
Services-Led Recovery
Manufacturing Slowdown
Sector performance
Services-Led Recovery
Services activity and new-business growth re-accelerated in August, helping overall private-sector growth recover.
Manufacturing Slowdown
Manufacturing continued to expand, but output and new-order growth weakened to their softest levels in five years.
Employment
Services-Led Recovery
Services companies increased hiring to meet rising demand and helped reduce outstanding business.
Manufacturing Slowdown
Manufacturers reduced staffing for the first time in about two-and-a-half years.
Prices and demand
Services-Led Recovery
Easing input-cost inflation reduced the pace of overall cost increases, while services benefited from improved activity and orders.
Manufacturing Slowdown
Companies raised selling prices faster to pass on costs, while challenging market conditions, competition and lower customer requirements constrained demand.
- Composite PMI
- 54.6 in August, up from 54.3 in July.
- Services PMI
- 54.5 in August, up from 53.3 in July.
- Manufacturing PMI
- 52.9 in August, down from 53.5 in July.
- Manufacturing output index
- 54.9 in August, down from 56.4 in July.
- Expansion streak
- The composite index remained above 50 for the 61st consecutive month.
- Employment
- Private-sector job creation accelerated to its joint-fastest pace since June 2025, while manufacturing employment fell.
- Prices
- Input-cost inflation was the softest in seven months, while selling-price increases were the strongest since April.
Sources
India August PMI rises to 54.6 – services activity recovers ,manufacturing growth hits 5-year low
India private sector activity picks up in August, services offset manufacturing slowdown
India's private sector output growth rises to 54.6 in Aug: PMI data
India's Flash PMI To 54.6 As Private Sector Growth Recovers In August On Back Of Services Activity
Private sector growth recovers in August from July’s low as service sector strengthen: HSBC Flash India PMI