Home / Business and Economy / India's August Economy Shows Slight Rebound, Services Lead
India's August Economy Shows Slight Rebound, Services Lead
22 Aug
Summary
- India's private sector activity improved in August after July's dip.
- Services sector growth recovered, offsetting manufacturing slowdown.
- Job creation accelerated to its fastest rate since June 2025.
India's private sector activity experienced a modest improvement in August, building upon the previous month's decline to a four-year low. The HSBC Flash India Composite Purchasing Managers' Index rose to 54.6 in August from 54.3 in July.
The recovery was led by the services sector, which saw its business activity and new work increase at a faster pace. This offset a slowdown in manufacturing, which recorded its weakest output rise in five years.
A notable development was the accelerated pace of job creation across the private sector economy. This rate of employment growth was the joint-fastest observed since June 2025, with firms citing the need to meet rising demand.
Prices charged by companies increased at their fastest rate since April, even as input cost inflation eased. Businesses reported higher costs for electricity, raw materials, transport, and technology.
