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Informist, Wednesday, Jul. 1, 2026

 

--India June manufacturing PMI 54.2 vs 55.0 in May 

 

NEW DELHI – India's manufacturing sector activity eased in June, mainly due to a slower increase in new orders, S&P Global said on Wednesday. June saw the second-weakest improvement in the health of the sector since mid-2022, S&P Global said. 

 

The HSBC India Manufacturing Purchasing Managers' Index moderated to 54.2 in June from 55.0 in May. The final manufacturing purchasing managers' index for June was a tad lower than the flash estimate of 54.5, released on Jun. 23. A purchasing managers' index reading of more than 50 denotes expansion in activity from the previous month, while a print below 50 indicates contraction.

 

Manufacturers saw slower expansion in buying levels, employment and output in June. This resulted in a softer rate of increase in total new orders and international sales, S&P Global said in a release. "Input inventories rose to a lesser degree and there was an outright contraction in post-production stocks."

 

Growth slowed across output, new orders, export orders and employment, with international sales recording their weakest increase since March 2023, Pranjul Bhandari, chief India economist at HSBC, said in the release. "The moderation suggests demand has cooled slightly after the earlier surge linked to the Middle East conflict."

 

International demand for Indian goods grew at the weakest pace in 39 months amid reports of subdued sales to some European markets, S&P Global, which compiles the PMI, said. With the exception of March, rates of increase in both output and new orders were the weakest seen in four years, it added. 

 

Several firms reported an improvement in demand conditions, while others noted subdued client appetite for their products and fierce market competition. Manufacturers also faced less intense cost pressures, as evidenced by the slowest increase in purchasing prices since February, S&P Global said.

 

Meanwhile, survey participants also cited higher prices of raw materials such as chemicals, electronic items, gas, metals, petroleum products, plastics, rubber, and wood, the release said.

 

According to the survey, there was an "outright fall" in finished goods inventories. "Firms linked the drop to the better alignment of production and stocks with current demand conditions," the release said. "Stocks of purchases rose at a softer pace, with a particularly sharp slowdown noted in the capital goods category."

 

Absence of capacity pressures also restricted recruitment activity at the end of the first quarter of 2026-27 (Apr-Mar). Employment in the sector expanded at the weakest rate in 2026 so far, S&P Global said.  

 

Concerns about demand and market conditions dampened business sentiment in June, with the overall degree of optimism retreating to a five-month low. "The proportion of firms forecasting output growth in the year ahead halved since May, with a large share of manufacturers signalling neutral expectations," S&P Global said.  End

 

Reported by Shweta

Edited by Avishek Dutta

 

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