August PMI falls to 52.8
Key Highlights
- India’s manufacturing PMI declined to 52.8 in August.
- The reading was the lowest in five years.
- PMI fell from 53.5 in July.
- Output and new order growth moderated.
- Manufacturing employment declined for the first time in more than two years.
- Business confidence improved to a three-month high.
New Delhi, September 1, 2026: India’s manufacturing sector growth slowed to a five-year low in August as output and new orders moderated amid softer demand conditions.
The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index declined to 52.8 in August from 53.5 in July.
The reading indicated the weakest improvement in the overall health of India’s manufacturing sector in five years.
A PMI reading above 50 indicates expansion, while a reading below 50 signals contraction.
The August decline marked the third consecutive monthly slowdown in manufacturing activity.
Output growth weakened to its slowest pace since August 2021, although manufacturing production continued to expand.
New orders also continued to increase, but at their weakest pace in five years.
Survey participants linked the slower growth to difficult market conditions and softer demand for certain products.
Export sales continued to grow, supported by demand from markets including Australia, Germany, mainland China, Spain, Thailand and the United States.
However, international order growth moderated compared with July.
Manufacturing employment declined for the first time in more than two years, with companies citing lower business requirements.
Input cost pressures continued to ease, allowing manufacturers to moderate increases in selling prices.
Business confidence improved to a three-month high, although sentiment remained below historical levels.
