India’s private sector expanded in August, driven by stronger services activity, even as manufacturing growth slowed, signalling mixed economic momentum according to HSBC and S&P Global survey.
India’s private sector picked up pace in August after a soft patch the previous month, with stronger services activity helping to offset a slowdown in manufacturing, according to the latest flash survey from HSBC and S&P Global.
The HSBC Flash India Composite PMI rose to 54.6 from 54.3 in July. That still pointed to expansion, extending growth to a 61st straight month, but the reading remained the second-weakest since March 2022, suggesting the broader economy is still losing some momentum.
Services did most of the heavy lifting. The flash services PMI climbed to 54.5 from 53.3, as companies reported firmer output and new orders after July’s weakest showing in more than four years. Hiring also improved across the private sector, though the gains were concentrated in services.
Manufacturing, by contrast, cooled. The flash manufacturing PMI slipped to 52.9 from 53.5, with output and new orders growing at their slowest pace in five years. Businesses also reported softer purchasing activity and elevated finished-goods inventories, while input-cost inflation eased to a seven-month low. Selling prices rose faster, indicating companies were passing more costs on to customers. Pranjul Bhandari, HSBC’s chief India economist, said stronger services activity kept overall private-sector growth broadly stable, even as manufacturing momentum weakened and firms raised prices more aggressively.
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