India Private Sector Growth Revised Lower

India’s HSBC Composite PMI stood at 54.3 in August 2026, down slightly from the flash reading of 54.6 but unchanged from July's reading. The latest result signalled a solid pace of private-sector growth, although it remained the joint-slowest in 4-1/2 years and below the historical trend. Despite accelerating from July, total sales growth remained subdued, with the rate of expansion the second-weakest since February 2022. Growth in goods production slowed, while service providers recorded a faster upturn. Aggregate employment increased at the fastest pace in 14 months, as robust hiring among service firms more than offset continued job shedding in manufacturing. Meanwhile, composite input-cost inflation eased to a seven-month low, although the pace of charge inflation accelerated to its strongest since April.

India’s HSBC Composite Flash PMI edged up to 54.6 in August 2026 from a final 54.3 in the previous month, which had marked the lowest reading since March 2022. Services growth strengthened, offsetting the weakest factory output in five years. New orders rose marginally, staying below recent trends, while export demand remained solid, with firms citing stronger orders from the US, Germany, China, Singapore, and Japan. Hiring accelerated to match the joint-fastest pace since June 2025, as companies expanded staff to meet demand. Outstanding business fell at its steepest rate in five years, though modestly, reflecting backlog clearances. Input costs rose firmly on higher electricity, steel, transport, and tech expenses, yet cost inflation eased to a seven-month low. Selling price inflation, however, picked up to its strongest since April, driven by both services and manufacturing. Lastly, sentiment inched higher, lifted by expectations of improving market conditions.

India’s HSBC Composite PMI was confirmed at 54.3 in July 2026, matching the flash estimate and marking its lowest level since March 2022. The latest reading eased from 57.1 in June, signaling the weakest expansion in private-sector activity since March 2022, as growth in the services sector slowed sharply, outweighing a slight pickup in manufacturing output. New orders rose at a softer pace across both sectors, with manufacturers continuing to outperform service providers. Despite the moderation in overall activity, employment growth accelerated to its fastest pace in three months, as stronger hiring in services more than offset slower job creation in manufacturing. Meanwhile, input cost inflation across the private sector eased to a six-month low, although firms raised selling prices at the fastest pace since April, pointing to resilient pricing power.