India Manufacturing Growth Softest in 9 Months

India's HSBC Manufacturing PMI edged down to 54.9 in October 2026 from 55.1 in the previous month, indicating continued growth in factory activity, albeit at a slower pace. Manufacturing output and new orders continued to expand at broadly unchanged rates, while new export orders increased at their fastest pace since June 2025. Manufacturers increased their stocks of purchases at the fastest rate in eight months, while finished goods inventories rose at the sharpest pace on record as firms responded to stronger new orders. However, growth in purchasing activity eased to its slowest pace since the current expansion began in July 2021. Manufacturing employment increased only slightly as firms had sufficient staffing capacity to handle workloads. On prices, manufacturing input cost inflation eased, while selling price inflation slowed to its weakest pace in almost four years.

India's HSBC Manufacturing PMI rose to 55.1 in September 2026 from 52.8 in August, revised down from a preliminary estimate of 55.7, but marking the strongest improvement in the sector's health in seven months. New orders increased at their fastest pace in seven months, while output growth accelerated to a four-month high, supported by firmer demand for electronic, food, pharmaceutical and textile products. New export orders also expanded at a quicker pace, with stronger demand from Brazil, Europe, the UAE and the US. The pickup in demand supported a solid resumption in factory employment, with employment growth rising at its fastest pace since May. Purchasing activity and inventories also increased at faster rates, while business confidence improved to a four-month high. On prices, input cost inflation accelerated, driven by higher prices for electronic components, pharmaceutical items and steel, while selling price inflation also quickened but remained modest.

India's HSBC Manufacturing PMI rose to 55.7 in September 2026 from 52.8 in August, marking the strongest improvement in the sector's health since February, preliminary estimates showed. Output and new orders grew at faster rates, with goods producers reporting stronger demand. New export orders also increased at a marginally faster pace, with gains from Brazil, Europe, the UAE and the US. Manufacturing companies also increased buying activity, while shorter supplier lead times supported a further improvement in operating conditions. Input stocks rose at the fastest pace since February, while finished goods inventories increased to an 11-and-a-half-year high. On the price front, input cost inflation picked up, driven by higher spending on electrical components, food, fuel, metals, pharmaceutical ingredients and technology resources. Factory-gate price inflation also strengthened. Looking ahead, business confidence among manufacturers improved in September.