HSBC's Flash India Composite PMI Rises to 54.6 in August 2026

India's private sector activity improved slightly in August 2026, after falling to a more than four-year low in July 2026, as per The Business Standard report. The main reason for the small improvement was better growth in services. 

The HSBC India Composite PMI rose to 54.6 in August 2026, from 54.3 in July 2026. The August number was also slightly higher than the Reuters poll estimate of 54.3. 

Services Growth Improves 

Services companies saw better business activity in August 2026. This helped the overall private sector reading move up from July 2026. 

Factory activity, however, was not as strong. Growth in the manufacturing sector was the weakest in five years. 

Business Activity Still Growing 

The PMI number was above 50 in August 2026. The number above 50 means that business activity is still growing. 

But the latest figure was much lower than the recent average of around 60. So, while companies were still seeing growth, the pace was not very strong. 

New Orders Grow Faster 

New orders increased at a faster rate in August 2026. New orders are an important indicator of how much demand companies are getting. 

Growth in export orders was also slower in August 2026 than in July 2026. This came at a time when overall new orders were growing at a faster pace. 

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Conclusion 

India's private sector activity saw a small improvement in August 2026, with the Composite PMI rising to 54.6. Services did better during the month, while manufacturing growth fell to its lowest level in 5 years. 

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