India manufacturing PMI falls to 5-year low in August as demand weakens
Indian manufacturing faced its lowest growth rate in five years during August, characterized by a slowdown in output and new orders amid diminished demand. This period also marked the first job contraction in over two years, although input procurement remained robust for the sixty-second month. Finished goods stocks swelled as actual sales fell short of forecasts.
India's manufacturing PMI fell to a five-year low of 52.8 in August, indicating a slowdown in the country's manufacturing sector due to weakening demand. The HSBC Purchasing Managers Index, compiled by S&P Global, showed a decline from 53.5 in July and 59.3 a year earlier. While production volumes continued to rise, the pace of growth eased, with the output index hitting its lowest level since August 2021.
Despite the weaker performance, business expectations improved, with 16% of survey respondents expecting output to rise in the next 12 months, while the rest anticipated little change. However, confidence remained subdued compared to historical standards. Employment also contracted slightly in August, marking the first decline after over two years of growth.
Brief written by urgent.news from The Economic Times - Economy's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
