India Manufacturing Expands Least in 5 Years

2026-08-21 05:08 By Kyrie Dichosa 1 min. read

India's HSBC Manufacturing PMI eased to 52.9 in August 2026 from 53.5 in July, marking the weakest improvement in factory conditions since August 2021.

Output and new orders continued to expand, although both recorded their slowest growth in five years amid challenging market conditions, competitive pressures and softer customer demand.

Export orders also increased solidly, but growth eased from July.

Purchasing activity rose, broadly reflecting stronger new order volumes, but input buying expanded at its slowest pace in more than five years, leading to softer inventory accumulation.

Employment in the manufacturing sector fell for the first time in two-and-a-half years.

On prices, input cost inflation softened to a seven-month low, while output price inflation accelerated to its strongest pace since April as firms increased efforts to pass higher costs on to customers.

Business confidence improved from July on hopes of better market conditions.



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India Manufacturing Expands Least in 5 Years
India's HSBC Manufacturing PMI eased to 52.9 in August 2026 from 53.5 in July, marking the weakest improvement in factory conditions since August 2021. Output and new orders continued to expand, although both recorded their slowest growth in five years amid challenging market conditions, competitive pressures and softer customer demand. Export orders also increased solidly, but growth eased from July. Purchasing activity rose, broadly reflecting stronger new order volumes, but input buying expanded at its slowest pace in more than five years, leading to softer inventory accumulation. Employment in the manufacturing sector fell for the first time in two-and-a-half years. On prices, input cost inflation softened to a seven-month low, while output price inflation accelerated to its strongest pace since April as firms increased efforts to pass higher costs on to customers. Business confidence improved from July on hopes of better market conditions.
2026-08-21
India Manufacturing Expands Least in Nearly 5 Years
India's HSBC Manufacturing PMI eased to 53.5 in July 2026 from 54.2 in June, revised down from the preliminary estimate of 53.9, and marking the weakest growth since August 2021. Output and new orders continued to expand, although total sales grew at one of the slowest rates in over four years amid challenging market conditions and softer client demand. Export orders, however, accelerated, supported by stronger demand from Canada, Egypt, Indonesia, Kenya, Nepal, South Africa, Thailand and the UAE. Softer domestic demand also slowed growth in purchasing activity and employment, while input buying rose at the weakest pace in 31 months. Supply-chain conditions improved markedly, with delivery times shortening at a near-record pace. On prices, input cost inflation eased to a five-month low, while output price inflation remained moderate. Business confidence recovered on expectations of stronger demand and infrastructure spending.
2026-08-03
India Manufacturing Growth Slows in June
India's HSBC Flash Manufacturing PMI fell to 53.9 in July 2026 from 54.2 in June, signaling a slower, below-trend improvement in factory conditions, preliminary estimates showed. This also marked the softest expansion since March 2025. Still, growth in output and new orders recovered some of the momentum lost in previous months. Export growth also picked up, with the seasonally adjusted index rising by nearly four points. Manufacturers stepped up purchasing activity, while a further improvement in supplier performance supported a faster increase in input inventories. Stocks of finished goods also returned to growth after declining in June. Employment continued to rise, and unfinished work increased further during the month. On the price front, both input cost inflation and output price inflation accelerated. Meanwhile, manufacturers grew more optimistic about the year ahead, with business confidence strengthening from June.
2026-07-24