FX.co ★ India Composite PMI Rises from Over 4-Year Low

India’s HSBC Composite Flash PMI inched up to 54.6 in August 2026 from a final reading of 54.3 in July, when it had fallen to its lowest level since March 2022. Stronger growth in services offset the weakest manufacturing output in five years.

New orders rose slightly but remained below recent norms, while export demand stayed robust, with firms reporting stronger orders from the US, Germany, China, Singapore, and Japan. Hiring accelerated to match the joint-fastest pace since June 2025, as companies increased staffing to meet demand.

Outstanding business declined at its sharpest rate in five years, albeit only modestly, pointing to progress in clearing backlogs. Input costs rose solidly, driven by higher electricity, steel, transport, and technology expenses, though overall cost inflation eased to a seven-month low.

By contrast, selling price inflation quickened to its highest level since April, supported by price increases in both services and manufacturing. Business sentiment improved slightly, underpinned by expectations of better market conditions ahead.