Table of Contents (5 sections)
Good News From Services, Warning Signs From Factories
India’s private-sector economy has regained some momentum in August — but underneath the headline numbers, two very different stories are developing.
Services are recovering.
Manufacturing is slowing.
According to the latest PMI data, India’s headline private-sector activity index climbed to 54.5 in August from 53.3 in July, when it had fallen to its lowest level in more than four years.
A reading above 50 indicates expansion.
Services Lead the Recovery
India’s enormous services economy was the main driver of the August improvement.
Services activity strengthened, helping lift overall private-sector growth.
That’s encouraging because services account for a large portion of India’s economy and include industries ranging from finance and technology to hospitality and professional services.
Manufacturing Tells a Different Story
Factories are providing the warning sign.
The manufacturing PMI fell to 52.9 from 53.5, marking a third consecutive monthly decline and its weakest level since August 2021.
Goods output and new orders also grew at their slowest pace in several years.
