India Manufacturing Growth Revised Lower

India's HSBC Manufacturing PMI eased to 52.8 in August 2026 from 53.5 in July, revised down from the preliminary estimate of 52.9, and marking the weakest improvement in the sector's health in five years. Output and new orders continued to expand, but both grew at their slowest rates since August 2021 amid softer demand and challenging market conditions. Export orders also increased, although growth in international sales eased from July. Softer demand weighed on purchasing activity and inventories, while manufacturing employment fell for the first time in two-and-a-half years. Input buying still expanded for the 62nd consecutive month, but at its weakest pace over the period. On prices, input cost inflation eased to a six-month low, while output price inflation remained slight and rose at its slowest pace in 45 months. Business confidence improved to its highest level since May, although it remained subdued by historical standards.

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.

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.