India’s HSBC Manufacturing PMI slipped to 52.9 in August 2026 from 53.5 in July, signaling the weakest improvement in factory conditions since August 2021. Output and new orders continued to grow, but both registered their slowest expansion in five years amid challenging market conditions, stronger competition, and softer customer demand. Export orders also rose at a solid pace, though growth moderated compared with July.
Purchasing activity increased, broadly in line with higher new order volumes, but the rate of input buying was the slowest in more than five years, resulting in only modest inventory accumulation. Manufacturing employment declined for the first time in two and a half years.
On the price front, input cost inflation eased to a seven-month low, while output price inflation quickened to its fastest pace since April, as firms intensified efforts to pass higher costs on to customers. Business confidence strengthened compared with July, supported by expectations of improved market conditions.
