India’s HSBC Manufacturing PMI slipped to 52.8 in August 2026 from 53.5 in July, below the preliminary estimate of 52.9 and signaling the weakest improvement in manufacturing sector conditions in five years. Both output and new orders continued to rise, but at their slowest pace since August 2021, reflecting softer demand and a more challenging market environment. Export orders also increased, though the pace of growth in international sales moderated compared with July.
Weaker demand dampened purchasing activity and led to lower inventory levels, while manufacturing employment declined for the first time in two and a half years. Input buying still grew for the 62nd consecutive month, but at the slowest rate over that period. On the cost side, input price inflation eased to a six‑month low, and output price inflation remained mild, advancing at its slowest rate in 45 months. Business confidence strengthened to its highest level since May, yet remained muted by historical standards.
