India’s private sector output growth rises to 54.6 in Aug: PMI data

New Delhi, Aug 21 (IANS) India’s private sector activity expanded at a slightly faster pace in August, supported by a rebound in services growth while manufacturing activity continued to expand, according to the HSBC Flash India PMI data released on Friday.

According to the data, the HSBC Flash India Composite PMI Output Index rose to 54.6 in August from 54.3 in July.

In addition, the improvement was led by the services sector which recorded a modest re-acceleration in business activity and new work after registering its weakest growth in 53 months in July.

Moreover, manufacturing activity also expanded in August, although the pace of growth moderated as the HSBC Flash India Manufacturing PMI came in at 52.9.

Indian companies reported a slightly stronger increase in new orders during August, while export orders continued to rise solidly across the private sector, according to HSBC.

Firms reported stronger demand from markets including the US, Germany, China, Singapore and Japan, although export growth moderated across both manufacturing and services.

Employment was a key positive in the August survey with private-sector job creation accelerating to its joint-fastest pace since June 2025. The increase was driven by the services sector.

Pranjul Bhandari, Chief India Economist at HSBC, said overall private sector output growth was broadly steady, helped by stronger services activity.

“Manufacturing growth weakened further in August, marking the softest improvement in five years. Output and new orders still rose, but at a slower pace,” she said.

Additionally, input cost pressures eased further in August with overall cost inflation at its softest level in seven months.

However, companies raised selling prices at a faster pace with charge inflation reaching its strongest level since April as firms sought to pass on higher costs to customers.

Business expectations for the coming year also improved from July which indicated greater optimism that market conditions would strengthen and sentiment improved across both manufacturing and services.

In the manufacturing sector, purchasing activity increased in August, broadly in line with higher new order volumes, according to the data.

–IANS

ag/