Report published September 1, 2026
India: Manufacturing PMI Drops to Five-Year Low in August 2026 – Goldman Sachs Report
Source and citation context
- Issuer
- Goldman Sachs
- Report date
- September 1, 2026
- Analysis as of
- Not stated in source
Authors / editors: Santanu Sengupta (Author), Arjun Varma (Author)
Finvaulta summarizes Goldman Sachs's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
The HSBC India Manufacturing PMI declined to a five-year low of 52.8 in August 2026 from 53.5 in July, indicating slower expansion. Weakness was driven by softer demand, a modest contraction in employment to 49.8, and decelerating input and output price inflation.
Key Takeaways
- 1.India's seasonally adjusted HSBC Manufacturing PMI dropped to a five-year low of 52.8 in August from 53.5 in July, but remained above the 50 expansion threshold.
- 2.Output and new orders rose at their slowest pace in five years, while manufacturing employment contracted to 49.8, marking its first contraction in two-and-a-half years.
- 3.Price pressures eased, with input costs dropping to a six-month low and output price increases slowing to a near four-year low as manufacturers limited cost pass-through.
Table of Contents
- Disclosure Appendix
- Reg AC
- Disclosures
- Global product; distributing entities
- General disclosures
Report data
Exhibit 1: Manufacturing PMI declined to a five-year low in August on lower output and a contraction in the employment index
| Metric | Estimate | Context |
|---|---|---|
| HSBC India Manufacturing PMI | 52.8 index | Declined from 53.5 in July to a five-year low, remaining in expansion |
| Employment Sub-Index | 49.8 index | Modest contraction representing the first contraction in two-and-a-half years |
| New Export Orders Index | 53.0 index | Remained in expansion but pace of expansion moderated from July |
| Input Price Index | 52.8 index | Eased to a six-month low supported by softer increases in material and transportation costs |
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Authors / Editors
Reported Data Context
- HSBC India Manufacturing PMI: 52.8 index (2026-08) · Source: Haver Analytics, Goldman Sachs Global Investment Research
- Employment Sub-Index: 49.8 index (2026-08) · Source: Haver Analytics, Goldman Sachs Global Investment Research
- New Export Orders Index: 53.0 index (2026-08) · Source: Haver Analytics, Goldman Sachs Global Investment Research
- Input Price Index: 52.8 index (2026-08) · Source: Haver Analytics, Goldman Sachs Global Investment Research
Themes
Regions
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