India’s Manufacturing PMI Hits 59.3 in August 2025, Highest Since 2008 Despite Tariffs
Despite heavy tariffs imposed by US President Donald Trump on several countries, most Asian nations, including India, have witnessed a sharp rise in manufacturing PMI. In August 2025, India’s Manufacturing PMI climbed to 59.3, its highest level since 2008, signaling strong factory activity. This resilience comes from steady domestic demand and improved pricing power of companies.
Why is Manufacturing Rising in India?
Business confidence in India has rebounded from a three-year low. Companies expect demand to remain strong in the future. Pranjul Bhandari, Chief India Economist at HSBC, said robust domestic orders have helped cushion tariff-related pressures. Manufacturers in China and the Philippines also showed greater optimism about the future.
Performance of Emerging Asian Economies
Other emerging Asian economies also reported improvements. China’s PMI rose from 49.5 in July to 50.5 in August, signaling a return to expansion. Malaysia hit a 15-month high, Thailand a 13-month high, and Indonesia a 5-month high. This shows that factory activity is strengthening across most Asian developing economies.
Struggles in Developed Economies
Developed nations continue to face challenges. The UK’s PMI remained below 50, indicating contraction. Japan and South Korea showed slight improvements but are still in contraction territory. The Eurozone, however, posted a PMI of 50.7, its highest in 41 months, hinting at recovery—possibly supported by a recent trade agreement with the US.
Pakistan and Brazil Face Decline
Not all emerging markets showed growth. Pakistan’s PMI slipped to 50.1, its weakest since May 2024. Brazil, under pressure from US tariffs, fell to its lowest level since mid-2023.
Uncertainty in Developed Markets
Uncertainty remains high in developed economies. In the Eurozone, sentiment has barely shifted, while the UK’s outlook remains cloudy. According to Rob Dobson, Director at S&P Global Market Intelligence, many manufacturers fear potential government policies, such as tax hikes, could hurt competitiveness. Japanese manufacturers, in particular, reported their lowest confidence levels for the next year in the past three months.
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