India’s private sector output growth edged higher in August, moving off an over four-year low as services activity staged a modest recovery.
The HSBC Flash India Composite PMI, compiled by S&P Global, climbed to 54.6 in August from 54.3 in July, beating a Reuters poll median estimate of 54.3.
Services businesses reported a re-acceleration in activity and new orders after posting their weakest growth in 53 months the previous month.
Manufacturing, however, continued to lose steam. The HSBC Flash India Manufacturing PMI slipped for a third straight month to 52.9, its weakest reading in five years.
The composite index remained above the neutral 50-mark that separates expansion from contraction, though it stayed well short of the roughly 60 average recorded earlier this year.
The figures point to a two-speed economy, with services cushioning overall growth even as factory activity keeps decelerating heading into the year’s final quarter.
Job creation across India’s private sector accelerated to its fastest pace since June 2025, with the services sector leading the pickup in hiring.
Export orders continued to rise at a solid pace in August, with growth reported from markets including the United States, Germany, China, Singapore and Japan.
Input cost inflation eased to its softest level in seven months, giving companies some relief on the pricing front even as overall demand growth remained modest.
Business sentiment for the year ahead improved across both the manufacturing and services sectors compared with July, according to the survey data.
The Reuters poll of economists had pegged the composite PMI at 54.3 for August, meaning the actual reading of 54.6 came in slightly above expectations.
The PMI survey is compiled by S&P Global from responses submitted by private-sector companies each month, and is closely watched as an early indicator of economic momentum ahead of official government data.
Photo by Gnoeee, Wikimedia Commons, CC BY-SA 4.0
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