India's August private sector growth recovers slightly from over four-year low, PMI shows

BENGALURU: India's private sector activity edged slightly higher in August from an over four-year low as a rebound in services growth offset the weakest expansion in the factory industry in half a decade. HSBC's flash India Composite Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 54.6 in August from July's 54-month low of 54.3, higher than a Reuters poll median estimate of 54.3. Services—the dominant sector—driven this month's rebound, with the headline PMI rising to 54.5 in August from a 53-month low of 53.3 in July. Manufacturing PMI fell for the third consecutive month to 52.9 from 53.5, its lowest since August 2021. New orders grew at a faster pace but remained weak compared to the long-term average. Export orders growth slowed from July. Companies cited challenging market conditions, competitive pressures, and lower customer requirements as constraints. Staffing in manufacturing fell for the first time in 2½ years, while overall employment accelerated to its joint-fastest pace since June 2025, driven by a 15-month-high growth in services-sector hiring. Input cost pressures eased to a seven-month low, but firms raised selling prices at the fastest rate since April to pass higher costs on to customers. Business confidence for the year ahead edged higher in August, though optimism was modest compared to early 2026.