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India’s flash composite PMI surges to 65.2 in August
Aug-21-2025

India’s flash Purchasing Managers’ Index (PMI) data showed that India’s private sector economy recorded its fastest growth since the start of survey data in December 2005 in August. The rapid upturn in business activity was driven by a surge in sales volumes, with total new order intakes rising at one of the quickest rates on record. Hiring picked up, with jobs growth accelerating, while firms also registered their most optimistic assessment of the year-ahead outlook since March. The HSBC Flash India Composite Output Index - a seasonally adjusted index that measures the month-on-month change in the combined output of India's manufacturing and service sectors - rose by over four points in August 2025 to 65.2, from 61.1 in July 2025, signalling a rapid expansion in private sector business activity that was the quickest on record. The latest survey data also revealed a strong degree of pricing power among companies as the rate of output charge inflation jumped to a 12-and-a-half-year high.

The data report noted that the HSBC Flash India Manufacturing PMI - a weighted average of the New Orders, Output, Employment, Suppliers’ Delivery Times and Stocks of Purchases indices - ticked up to 59.8 in August, from 59.1 in July, indicating a faster improvement in factory operating conditions across India. In fact, the index registered its highest reading since January 2008. There was considerable strength in demand for Indian goods and services in August. Both manufacturers and service providers saw new order intakes rise at sharp and accelerated rates on the month, underpinning a near survey-record overall expansion. Export markets supported August's uplift in overall new business, underlying survey data showed, with new business from abroad increasing at the quickest pace since the composite data were first published in 2014. 

As for pricing trends, the latest survey data indicated an intensification of inflationary pressures across India's private sector. Input costs rose markedly amid reports of higher wage bills (particularly at services companies) and greater raw material prices. Notably, charges set by surveyed businesses were raised to the sharpest extent since February 2013. Looking ahead, private sector companies in India anticipated further growth in business activity over the next 12 months. In fact, expectations improved strongly on the month and were their most optimistic since March. Positive forecasts were underpinned by the demand outlook, anecdotal evidence revealed. Stronger sentiment was seen at both manufacturing and services companies.

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