Manufacturing PMI stays strong as core industries post 4.8% gain

The HSBC India Manufacturing Purchasing Managers' Index (PMI) held steady at 52.8 in August, confirming that factory activity continues to expand even as the Core Industries Index posted a provisional 4.8% year‑on‑year increase. The index’s growth was anchored by double‑digit rises in cement (12.5%) and power generation (11.6%), with iron ore output also climbing 5.5%.

While steel and refinery products added modest gains of 3.4% and 2.6% respectively, sectors such as coal, natural gas, crude oil and fertilizers slipped into negative territory. The cumulative April‑August growth of 4.3% outpaces the 2.4% recorded in the same window of the previous fiscal year, underscoring a strengthening industrial base.

Survey respondents indicated that about 16% of firms expect to raise production over the next twelve months, while the remainder anticipate activity to remain around current levels. Business confidence reached its post‑May peak, though it still lags behind longer‑term historical averages.