India flash Purchasing Managers Index (PMI) surges to 65.2 in August on record services, manufacturing growth

India’s private sector economy recorded its fastest growth since the start of survey data in December 2005, with the HSBC Flash India Composite Purchasing Managers Index (PMI) Output Index jumping to 65.2 in August 2025 from 61.1 in July, according to Standard & Poor's (S&P) Global. Services led the surge, with the HSBC Flash India Services PMI Business Activity Index reaching a survey high of 65.6, supported by strong new business orders from both domestic and export markets. The Manufacturing PMI rose to 59.8 from 59.1, marking the fastest improvement in factory operating conditions since January 2008. Margins improved as output prices increased at a faster pace than input costs, reflecting strong pricing power amid heightened demand.
Demand conditions strengthened further across sectors, with export orders from Asia, the Middle East, Europe, and the United States (US) growing at the fastest pace since composite data collection began in 2014. Employment continued to rise for the 27th consecutive month, driven mainly by services. At the same time, backlogs of work expanded only slightly, the slowest pace since May 2025. Input costs rose due to higher wages and elevated raw material prices, and output charges increased at the sharpest rate in over 12 years. Optimism among private sector firms reached its highest level since March, underpinned by expectations of sustained robust demand in the year ahead.

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