Global Manufacturing Shifts as India Hits 17-Year Growth High

Global manufacturing performance diverged sharply in August 2025, led by a historic surge in India. HSBC reported that India's manufacturing Purchasing Managers’ Index (PMI) rose to 59.3, marking the fastest growth in over 17 years. This expansion persisted despite the United States implementing 50% tariffs on Indian goods on August 27, which slowed export growth to a five-month low. Robust domestic demand and orders from Asia, Europe, and the Middle East buffered the impact of the tariffs.

In contrast, Ireland and Russia struggled with demand. Ireland's manufacturing sector saw its slowest growth in several months, with its PMI dropping to 51.6 due to subdued demand, particularly from the United Kingdom. Russia's sector continued to contract for a third consecutive month, though the decline slowed as the PMI rose to 48.7. To stimulate sales, Russian firms implemented the steepest price cuts since July 2022.

Greece provided a positive counterpoint in Europe, with its PMI rising to 54.5, the strongest growth in five months. Like India, Greece saw a surge in domestic demand and new sales, although its export orders fell for the fourth straight month. Across several regions, including Ireland and Russia, input price inflation trended lower, while employment generally remained resilient despite varying production speeds.