India’s manufacturing sector witnessed a sharp moderation in growth in August, with the HSBC India Manufacturing Purchasing Managers’ Index (PMI) falling to 52.8, its lowest level in five years.

The seasonally adjusted index declined from 53.5 in July, reflecting a slower pace of expansion as output and new orders eased amid weaker demand conditions.

Despite the slowdown, the PMI remained above the 50-mark, indicating that the manufacturing sector continued to expand during the month. In PMI terms, a reading above 50 signals growth, while a reading below 50 indicates contraction.