New Delhi, Sept. 1 -- India's manufacturing PMI slipped to 52.8 in August, falling below its long-run average of 54.2 as output, and new orders slowed to five-year lows.

The HSBC India Manufacturing Purchasing Managers' Index (PMI) noted that the seasonally adjusted index declined from 53.5 in July to 52.8 in August. The latest figures highlighted the weakest improvement in the health of the manufacturing sector in five years.

The report linked the deceleration to "the weaker upturn to challenging market conditions and subdued appetite for some products", although consumer goods remained an exception.

Pranjul Bhandari, Chief India Economist at HSBC, said, "India's final manufacturing PMI slipped to 52.8 in August, extending its decline...