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Informist, Friday, Aug. 21, 2026

 

--India Aug flash composite PMI output index 54.6 vs 54.3 July final

--India Aug flash services PMI activity index 54.5 vs 53.3 July final

--India Aug flash manufacturing PMI 52.9 vs 53.5 in July final

 

NEW DELHI – Growth in India's private sector activity improved slightly in August on the back of a pickup in the services sector output, S&P Global said Friday. Growth in the services sector improved, more than offsetting the slowest rise in manufacturing output in five years, S&P Global, which compiles the PMI, said in a release.

 

The HSBC Flash Composite Purchasing Managers' Index rose to 54.6 in August from a 52-month low of 54.3 in July. "Although the latest reading signalled a faster expansion of private sector activity, it was the second-weakest since March 2022," S&P Global said. A PMI reading of more than 50 denotes expansion in activity from the previous month, while a print below 50 indicates contraction.

 

The HSBC Flash Services Purchasing Managers' Index rose to 54.5 in August from 53.3 in July. Survey participants witnessed a slightly stronger increase in new order volumes during August, with demand arising from the US, Germany, China, Singapore, and Japan. "Export orders increased solidly across the Indian private sector midway through the second fiscal quarter, albeit with the rate of expansion easing across both manufacturing and services," S&P Global said.

 

The HSBC Flash Manufacturing Purchasing Managers' Index fell to 52.9 in August from 53.5 in July. "The pace of expansion in input purchases eased to the slowest recorded in more than five years, which in turn contributed to softer rates of accumulation of both pre- and post-production inventories," S&P Global said. 

 

Softening in input purchases can be attributed to expensive key products such as electricity, transport, technology, and raw materials, particularly steel, according to the survey. This resulted in the domestic companies increasing their charges, which was seen at the fastest rate since April.

 

"Stock of finished goods remained high even though input buying slowed. Cost pressures eased, but firms raised selling prices faster, pointing to stronger pass-through," Pranjul Bhandari, chief India economist at HSBC, said in the release.

 

Further, market participants reported a strong increase in employment across the Indian private sector economy. "The rate of job creation accelerated to the joint-fastest since June 2025 (alongside April 2026)," S&P Global said. "This upturn was centred on the service economy, whereas staffing levels in manufacturing decreased for the first time in two-and-a-half years."

 

That said, domestic companies remain hopeful of improved market conditions going forward, with their expectations for the coming year edging higher in August.  End

 

Reported by Shweta

Edited by Akul Nishant Akhoury

 

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