Manufacturing Growth Hits 5-Year Low as Demand Softens
What Happened
India’s manufacturing sector expanded at its slowest pace in five years in August, with the HSBC Manufacturing PMI falling to 52.8 from 53.5 in July. Softer demand led to weaker growth in output and new orders, while manufacturing employment declined for the first time in two-and-a-half years.
Key Takeaways
Despite remaining in expansion territory, the sector is showing signs of losing momentum. Slower domestic demand, weaker order growth and cautious hiring weighed on activity, although easing input costs and continued export growth offered some support.