India’s manufacturing growth in August slowed to a three-month low, as reflected by the HSBC India Manufacturing Purchasing Managers’ Index (PMI), which fell to 57.5 from 58.1 in July. As per the Economic Times, this decline was primarily due to a significant softening in demand, especially on the international front, which saw its weakest growth since January. Despite this slowdown, the index remained above the 50-mark that separates growth from contraction, maintaining a positive trajectory since July 2021.
However, inflation concerns and heightened competition have dampened business optimism. While domestic demand continues to be strong, both output and new orders sub-indexes have dropped to their lowest levels in seven months, indicating potential challenges ahead for sustained growth.
