Factory Output at 17-Year High in Aug Amid Tariff Headwinds

New export orders eased in August as American buyers stayed away over tariff uncertainty

- Rhik Kundu

India's manufacturing activity expanded at its fastest pace in over 17 years in August, driven by stronger alignment between supply and demand, a private survey showed on Monday.

The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by financial intelligence solutions provider S&P Global, climbed to 59.3 in August from 59.1 in July. The index recorded a reading of 58.4 in June, 57.6 in May and 58.2 in April.

"Up from 59.1 in July to 59.3 in August, the seasonally adjusted HSBC India Manufacturing PMI—a single-figure indicator of sector performance—indicated the fastest improvement in operating conditions for 17-and-a-half years," the survey said.

The last time PMI rose to above 60 was in 2008.

"The upward movement in the headline figure largely reflected an acceleration in growth of production volumes," it added.