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Informist, Monday, Sept. 1, 2025

 

--India Aug manufacturing PMI 59.3 vs 59.1 in Jul 

 

NEW DELHI – India's manufacturing activity in August expanded at the quickest pace in over 17 years, with the HSBC India Manufacturing Purchasing Managers' Index rising to 59.3 from 59.1 in July, S&P Global said Monday. The print for August was the highest since February 2008.

 

Manufacturing activity increased last month because of stronger demand, which led to higher production and employment, S&P Global, which compiles the PMI, said in a release. 

 

The final manufacturing PMI print for August was lower than the flash figure of 59.8, data for which was released on Aug. 21. A PMI reading of more than 50 denotes expansion in activity, while a print below it shows contraction.

 

The record manufacturing PMI print follows India's GDP data for the June quarter, released Friday, which showed the Indian economy grew quicker than expected at 7.8%. GDP growth was driven by the manufacturing sector, which grew at a five-quarter high of 7.7% in Apr-Jun.

 

PMI data reflected acceleration in the growth of production volumes, S&P Global said, with the rate of expansion the quickest in nearly five years. International orders, however, rose at the lowest pace in five months.

 

"The increase of US tariff on Indian goods to 50% might have contributed to the slight easing in new export orders growth, as American buyers refrain from placing orders in the midst of tariff uncertainty," Pranjul Bhandari, chief India economist at HSBC, said in the press release. "Overall orders growth, on the other hand, held up much better, suggesting that domestic orders remained robust, helping to cushion against tariff-related drag on the economy."

 

Input costs rose in August, led by higher prices of bearings, leather, minerals, steel and small electronic parts. The overall rate of inflation was, however, moderate and below its long-run average, S&P Global said.

 

"Conversely, selling charges rose at an above-trend pace, reportedly as a result of demand strength. The marked rate of inflation seen in August was the highest for three months," S&P Global said. 

 

Manufacturing firms remained optimistic about the year-ahead outlook and the overall level of positive sentiment recovered from July's three-year low, S&P Global said.  End

 

Reported by Shubham Rana

Edited by Avishek Dutta

 

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