India's economic activity remained subdued in August as a slowdown in manufacturing was offset by slight growth in the services sector, a flash survey by HSBC Holdings Plc showed Friday. The manufacturing purchasing managers' index fell to 52.9 this month from 53.5 in July, while the services purchasing managers' index stood at 54.5 from 53.3 in the same period. That resulted in the composite index rising marginally to 54.6 in August compared with 54.3 in July, which last month was over four-year low.

The data suggests the economy continues to face headwinds from weakening factory output even as service sector resilience provides some support. Manufacturing growth has decelerated for consecutive months, reflecting softer demand conditions and elevated input costs. Meanwhile, services expansion accelerated, driven by domestic consumption and business activity.

Economists noted the composite reading remains above the 50 threshold separating expansion from contraction, but the pace of growth has moderated significantly from earlier in the year. The Reserve Bank of India will likely monitor these trends closely as it assesses monetary policy settings amid evolving growth-inflation dynamics.