India's private sector growth slightly rebounds in August

India's private sector activity saw a marginal uptick in August, rebounding from a more than four-year low as a recovery in the services sector helped offset the weakest expansion in manufacturing in five years, according to a private survey released on Friday. The HSBC Flash India Composite Purchasing Managers' Index (PMI) rose to 54.6 in August from a final reading of 54.3 in July, which was the lowest since early 2022. The index remained above the 50-point threshold that separates expansion from contraction for the 61st consecutive month.

The improvement was driven primarily by the services sector, which staged a modest reacceleration after recording its weakest growth in business activity and new work in 53 months during July. The HSBC Flash India Services PMI Business Activity Index climbed to 54.5 in August from 53.3 in the prior month. In contrast, the manufacturing sector lost momentum, with its PMI falling for a third straight month to 52.9 from 53.5 in July. This marked the weakest improvement in overall factory conditions in five years, with both production and new orders growing at their slowest pace since August 2021.

"Overall private sector output growth was...