# India private sector growth picks up in August, services offset factory slowdown 2026-08-21T13:01:08+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet India's private sector growth accelerated in August, driven by a strong performance in services that offset a slowdown in manufacturing, according to the HSBC India Purchasing Managers' Index (PMI) data. The composite PMI output index rose to 60.7 in August from July's 60.4, signalling the fastest expansion in three months. A reading above 50 indicates expansion. The services PMI business activity index climbed to 60.9 from 60.3 in July, marking a three-month high, as new business orders and demand remained robust. In contrast, the manufacturing PMI eased to 56.7 from 58.1 in July, the lowest in three months, with output growth slowing and new export orders dipping. Input cost inflation in manufacturing accelerated to a three-month high, while services firms saw input prices rise at a softer pace. Job creation across the private sector remained solid, with services adding headcount at the fastest rate in nearly two years. However, business confidence in the services sector slipped to a four-month low, while manufacturers' sentiment improved slightly. ## Indian Opinion Analysis The PMI data offers a mixed picture for the RBI as it prepares for its October monetary policy review. Services sector strength suggests domestic demand remains buoyant, but the manufacturing slowdown and rising input costs could complicate inflation management. Services typically contribute over half of India's GDP, so its resilience is a positive sign, but the drop in manufacturing PMI to a three-month low warrants watching. The RBI's focus will be on whether services inflation pressures persist. The next key signal is the September PMI data release in early October. ## Coverage - ndtvprofit.com Straightforward reporting of PMI data with no editorialising or attribution of blame or credit. This story was synthesised by AI from the source linked above. Tags: HSBC India PMI, India GDP, RBI Canonical: https://indianopinion.org/india-private-sector-growth-picks-up-in-august-services-offset-factory-slowdown/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/india-private-sector-growth-picks-up-in-august-services-offset-factory-slowdown/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes. How this brief was made: an AI model read the report linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/