India Manufacturing PMI Hits Five-Year Low

India's manufacturing sector expanded at its slowest pace in five years in August, according to the HSBC India Manufacturing PMI compiled by WSP Global. The index fell to 52.8 from 53.5 in July, slightly below the preliminary estimate of 52.9. New orders grew at the slowest rate since August 2021, and output expansion was the weakest in five years. Factory employment declined for the first time in 30 months, though marginally. Input cost inflation eased to a six-month low, and output price inflation slowed to its weakest in 45 months. Despite the slowdown, business confidence improved slightly to its highest since May, though still subdued. India's economy grew 7.8% year-on-year in the April-June quarter, beating expectations, but growth is expected to moderate to 6.6% in the current quarter.