New Delhi, Sept. 1 -- The HSBC India Manufacturing Purchasing Managers' Index (PMI) survey for August paints a grim picture. The seasonally adjusted headline index fell for the third month in a row to 52.8 in August from 53.5 in July. This is the weakest improvement in the sector's health in five years, and below the long-run average of 54.2.

The loss of business momentum stemmed from output and new orders growth slowing to five-year lows. Firms noted challenging market conditions and weak demand for some products. Input cost pressures receded during the month, with input inflation slowing to its weakest pace in six months. Even so, manufacturers continued to face higher costs for materials, including steel, and transport. Firms had limi...