India Manufacturing Growth Slows in June

India's HSBC Flash Manufacturing PMI fell to 53.9 in July 2026 from 54.2 in June, signaling a slower, below-trend improvement in factory conditions, preliminary estimates showed. This also marked the softest expansion since March 2025. Still, growth in output and new orders recovered some of the momentum lost in previous months. Export growth also picked up, with the seasonally adjusted index rising by nearly four points. Manufacturers stepped up purchasing activity, while a further improvement in supplier performance supported a faster increase in input inventories. Stocks of finished goods also returned to growth after declining in June. Employment continued to rise, and unfinished work increased further during the month. On the price front, both input cost inflation and output price inflation accelerated. Meanwhile, manufacturers grew more optimistic about the year ahead, with business confidence strengthening from June.

India's HSBC Manufacturing PMI eased to 54.2 in June 2026 from 55.0 in May, revised lower from the preliminary reading of 54.5, signaling the second-weakest improvement in factory activity since mid-2022. Growth in output and new orders slowed to among the weakest rates in four years, while export orders rose at the softest pace since March 2023 amid subdued demand from some European markets. Softer demand also led to slower increases in purchasing activity, employment, and input inventories, while finished goods stocks fell at the fastest pace in six months as firms aligned production with current demand. Cost pressures eased, with input price inflation slowing to a four-month low and output charge inflation easing to a three-month low, reducing the need for aggressive price increases. Meanwhile, supplier delivery times improved only marginally, and business confidence slipped to a five-month low as concerns over demand and market conditions weighed on the outlook.

India's HSBC Manufacturing PMI fell to 54.5 in June 2026, a three-month low, down from 55.0 in May, preliminary estimates showed. Growth in manufacturing activity slowed as demand softened and cost pressures persisted, restricting output expansion. New orders continued to rise but at a weaker pace, with firms citing competitive pressures and subdued domestic and export demand. Export orders grew at the slowest pace since March 2023. Employment rose only marginally, marking the weakest hiring pace in six months, as manufacturers adjusted staffing to softer demand conditions. Backlogs of work were broadly stable. Purchasing activity also increased at its slowest pace in two-and-a-half years, prompting a softer increase in stocks of purchases and an outright decline in inventories of finished products. On prices, cost pressures remained elevated. Business confidence remained positive but weakened to its lowest level in close to four years.