Manufacturing activity slowed down to 57.5 in August from 58.1 a month back, according to results of a private survey released on September 2.

The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index, however, remained higher than the long-term average, indicating strong performance.

Data released last week showed the manufacturing growth remained strong at 7 percent in the first quarter of the fiscal from 5 percent in the previous year.

Although India’s GDP growth declined to 6.7 percent in Q1FY25, a higher value-added indicated strong economic momentum, especially with signs of private consumption picking up and investment rising.

Economists expect further pick-up as government spending gathers pace, which had contracted 0.2 percent in the first quarter due to the general elections.

Core industries data showed a rebound to 6.1 percent growth in July compared with the disappointing previous month when growth had dipped to a five-month low of 5.1 percent.

Government capex also jumped 107.8 percent in July, as per data released by the Controller General of Accounts, but utilisation at 16.3 percent in the first four months of the year remained below 23.5 percent same period last fiscal.