India PMI August 2026

India's private sector activity improved marginally in August 2026, with the HSBC Flash Composite PMI rising to 54.6 from 54.3 in July, when it had hit a four-year low. The recovery was driven by a rebound in services activity, while manufacturing growth weakened to its slowest pace in five years. The Flash Services PMI rose to 54.5 from 53.3, while the Flash Manufacturing PMI fell to 52.9 from 53.5. Employment growth accelerated to its joint-fastest pace since June 2025, driven by services, while manufacturing employment declined for the first time in two-and-a-half years. Input cost inflation eased to a seven-month low, but companies raised selling prices at a faster pace, with charge inflation at its strongest since April. Export orders continued to rise, with demand from the US, Germany, China, Singapore, and Japan. Business expectations improved slightly. HSBC Chief India Economist Pranjul Bhandari noted that overall private sector output growth was broadly steady, helped by stronger services activity, while manufacturing growth weakened further.