Business
India’s flash PMI climbs to 54.6 in August as services activity recovers
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 climbed slightly in August, recovering from an over four-year low as services growth staged a rebound.
The HSBC Flash India Composite PMI, compiled by S&P Global, rose to 54.6 in August from 54.3 in July, above a Reuters poll median estimate of 54.3.
The improvement was led by services businesses, which reported a modest re-acceleration in activity and new work following their weakest growth in 53 months in July.
Manufacturing growth continued to weaken, with the HSBC Flash India Manufacturing PMI falling for a third consecutive month to 52.9, its softest level in five years.
The composite index remained above the 50-mark separating growth from contraction, though it stayed well below the roughly 60 average recorded earlier in 2026.
The figures paint a mixed picture for India’s economy, with services offering support even as factory output growth keeps losing momentum into the year’s final months.
Business sentiment for the year ahead improved across both the manufacturing and services sectors compared with July, according to the survey data.
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.
Photo by Gnoeee, Wikimedia Commons, CC BY-SA 4.0