HOME > MARKETS > ECONOMY NEWS
  ECONOMY NEWS
ECONOMY
India’s private sector activity improves in August: Flash PMI data
Aug-21-2026

After marking the slowest growth since early-2022 in July, India's private sector activity edged slightly higher in the month of August 2026, amid a slightly stronger increase in new order volumes, although the pace of growth was subdued compared with the trend observed over recent years. Besides, export orders increased solidly across the Indian private sector midway through the second fiscal quarter, albeit with the rate of expansion easing across both manufacturing and services.

According to the data report, the HSBC Flash India PMI Composite Output Index - a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors - was up from a final reading of 54.3 in July to 54.6 in August. Further, the HSBC Flash India Manufacturing PMI eased from final reading of 53.5 in July to 52.9 in August, while HSBC Flash India Services PMI Business Activity Index rose to 54.5 in August from July’s final reading of 53.3. 

On the price front, Indian companies increased their charges at the fastest rate since April, despite a further softening of input cost pressures. There was a strong increase in employment across the Indian private sector economy. The rate of job creation accelerated to the joint-fastest since June 2025 (alongside April 2026), as businesses commented on a need to hire workers to meet rising demand. This upturn was centred on the service economy, whereas staffing levels in manufacturing decreased for the first time in two-and-a-half years.

Hiring gains at service sector companies allowed them to continue clearing backlogs. At the composite level, outstanding business decreased at the steepest rate in five years, albeit modestly overall. Meanwhile, business expectations for the coming year edged higher in August, reflecting hopes among companies that market conditions would improve. The degree of positivity improved from July across both manufacturing and services.


  RELATED NEWS >>