India’s PMI slips to 52.8 as factory growth loses steam, hits five-year low
India's manufacturing sector experienced a slowdown in August, with the HSBC Manufacturing PMI falling to a five-year low of 52.8. The decline is attributed to weaker market conditions and a contraction in employment for the first time in over two years.
Why it matters
The data suggests a cooling in India's industrial growth, which could have broader implications for the national economy and labor market.
India’s manufacturing sector lost further momentum in August, with slower output and new orders dragging factory activity to its weakest level in five years. Employment also fell for the first time in two-and-a-half years, marking a broader slowdown in the sector.The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index fell to 52.8 in August from 53.5 in July, moving below its long-run average of 54.2. The reading indicated the weakest improvement in the health of the manufacturing sector in five years.The slowdown was attributed to "the weaker upturn to challenging market conditions and subdued appetite for some products".
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