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Informist, Tuesday, Sept. 1, 2026

 

--India Aug manufacturing PMI 52.8 vs 53.5 in July

--India Aug manufacturing PMI 52.8, weakest in five years

 

NEW DELHI – Growth in India's manufacturing sector activity eased to a five-year low in August because of softer demand conditions, S&P Global said on Tuesday. Firms reported softer demand conditions, which subsequently led to weaker increases in buying levels and stocks, as well as a mild decline in employment, S&P Global, which compiles the PMI, said. 

 

The HSBC India Manufacturing Purchasing Managers' Index moderated to 52.8 in August from 53.5 in July. "The latest HSBC India Manufacturing PMI signalled a loss of momentum as growth in both output and new orders slowed to five-year lows," S&P Global said in a release.

 

The final manufacturing purchasing managers' index for July was largely in line with the flash estimate of 52.9, released on Aug. 21. A purchasing managers' index reading of more than 50 denotes expansion in activity from the previous month, while a print below 50 indicates contraction.

 

"India's final manufacturing PMI slipped to 52.8 in August, extending its decline for a third consecutive month. The output index fell to its lowest level since August 2021, signalling that production is still expanding but at a markedly slower pace," Pranjul Bhandari, chief India economist at HSBC, said in the release.

 

On the demand side, panellists attributed the weaker upturn to challenging market conditions and subdued appetite for some products. The impact of the challenging market conditions can also be seen in the international orders, where the growth eased in August from July, S&P Global said. The sector saw demand mainly coming from markets including Australia, Germany, mainland China, Spain, Thailand, and the US.

 

Even the inventory data offered further evidence of caution among manufacturers. Companies saw lower-than-expected sales as stocks of finished goods increased for the second month running, S&P Global said. "Pre-production inventories also rose again, supported by shorter supplier delivery times and continued growth in input purchasing, though the pace of stock building eased to the weakest since April."

 

Survey participants continued to face higher costs for materials, including steel, and transport. That said, the overall rate of inflation was the weakest for six months, S&P Global said. "Softer cost pressures helped firms limit increases in their selling prices."
 

The softer sales environment was reflected in workforce and purchasing decisions. Employment in the manufacturing sector fell for the first time in two-and-a-half years. "Companies that reduced staffing levels mainly cited lower business requirements," the release said.

 

Business sentiment remained strong despite softer performance, S&P Global said. "Around 16% of survey participants forecast higher output over the coming 12 months, while the remainder expect no change from present levels."  End

 

Reported by Shweta

Edited by Akul Nishant Akhoury

 

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