India's services PMI rises to 54.1. Manufacturing PMI hits five-year low.
Where it stands
India's services PMI rose to 54.1 in August 2026, from 53.3 in July. The manufacturing PMI fell to 52.8, from 53.5 in July. The manufacturing reading is the lowest in five years. The manufacturing number came out on 1 September 2026. The services number came out on 3 September 2026. Both readings stay above 50. A reading above 50 means activity grew compared with the month before. The services reading was still the second-weakest since March 2022. Services firms hired at the fastest pace in 15 months. Manufacturers cut jobs for the first time in two and a half years. The composite PMI stayed at 54.3, the same as in July. S&P Global compiles the survey for HSBC.
Background
A Purchasing Managers' Index (PMI) is a monthly survey of companies. S&P Global compiles the India PMI for HSBC. About 400 manufacturers take part. About 400 service companies take part. Each company reports whether orders, output, jobs and prices rose, fell or stayed the same. A reading of 50 means no change from the previous month. Above 50 means expansion. Below 50 means contraction. The manufacturing PMI is a weighted average of five indices. The services PMI is based on one question about business activity. The composite PMI combines the two, weighted by their share in GDP.
How it developed
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1 September 2026, 10:30 am ISTHow it started
Manufacturing PMI fell to a five-year low of 52.8 in August
S&P Global released the HSBC India Manufacturing PMI for August 2026 on 1 September 2026. The index fell to 52.8, from 53.5 in July, the lowest reading in five years. Output and new orders grew at the slowest pace since August 2021. Manufacturing jobs fell for the first time in two and a half years. Input cost inflation was the lowest in six months. HSBC chief India economist Pranjul Bhandari said production is "still expanding but at a markedly slower pace".
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3 September 2026, 10:30 am ISTNew fact
Services PMI rose to 54.1. Services hiring hit a 15-month high.
S&P Global released the HSBC India Services PMI for August 2026 on 3 September 2026. The services index rose to 54.1, from 53.3 in July, below the long-run average of 54.5. Services firms added jobs at the fastest pace in 15 months. Prices charged rose at the fastest pace since March 2026. The composite PMI stayed at 54.3, the same as in July. HSBC chief India economist Pranjul Bhandari said growth was "still among the weakest seen in over four years".
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3 September 2026Settled
Both August readings are out. Growth continued at a slower pace.
Both August 2026 PMI readings are now published. S&P Global said private sector growth in August was solid. The pace was the joint-slowest in four and a half years. Total private sector employment grew at the fastest pace in 14 months. On 31 August 2026 the statistics office put April to June 2026 GDP growth at 7.8 per cent. The official Index of Industrial Production (IIP) grew 6.7 per cent in July 2026.
Why it matters for UPSC
For GS3, remember that a PMI is a private survey of purchasing managers, not government data. S&P Global compiles the India PMI. Official factory output data come from the Index of Industrial Production (IIP). The Ministry of Statistics releases the IIP every month. Above 50 means expansion. Below 50 means contraction. At 52.8 the manufacturing PMI still shows growth, only slower growth.
Key terms
Sources (8)
- S&P Global · official · HSBC India Manufacturing PMI: India Manufacturing PMI slips to five-year low in August (1 September 2026)3 Sep, 3:49 pm
- Business Standard · Manufacturing PMI falls to 5-year low in August amid sales slowdown (1 September 2026)3 Sep, 3:49 pm
- ANI · India Manufacturing PMI falls to 52.8 in August as output and new orders' growth slowed to five-year low: HSBC (1 September 2026)3 Sep, 3:49 pm
- S&P Global · official · HSBC India Services PMI: Indian services activity expands at quicker rate in August (3 September 2026)3 Sep, 3:49 pm
- Business Standard · Services PMI rises to 54.1 in August as output and employment pick up (3 September 2026)3 Sep, 3:49 pm
- IANS · India services PMI rises to 54.1 in August, employment growth hits 15-month high (3 September 2026)3 Sep, 3:49 pm
- Ministry of Statistics and Programme Implementation · official · Press Note on Quarterly Estimates of Gross Domestic Product for the First Quarter (April-June) of 2026-27 (31 August 2026)3 Sep, 3:49 pm
- National Statistics Office · official · Index of Industrial Production: IIP (General) growth 6.7% for July 2026, Key Highlights3 Sep, 3:49 pm