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Informist, Tuesday, Jul. 1, 2025

 

--India Jun manufacturing PMI 58.4 vs 57.6 in May 

 

NEW DELHI – India's manufacturing sector activity expanded at the highest pace in 14 months in June, with the HSBC India Manufacturing Purchasing Managers' Index rising to 58.4 last month from 57.6 in May, S&P Global said on Tuesday. "Companies welcomed one of the fastest increases in external orders in over 20 years of survey history," the report said. Goods producers lifted input buying to the greatest extent in 14 months, which supported further expansion in stocks of purchases, it added. 

 

The final manufacturing PMI print for June is at the same level as the flash figure of 58.4, data for which was released on Jun. 23. A PMI reading of more than 50 denotes expansion in activity, while a print below it shows contraction.

 

"Robust end-demand fuelled expansions in output, new orders, and job creation," Pranjul Bhandari, chief India economist at HSBC, said. "To keep up with strong demand — particularly from international markets, as evidenced by the substantial rise in new export orders — Indian manufacturing firms had to tap deeper into their inventories, causing the stock of finished goods to continue shrinking," Bhandari said. 

 

Production volumes increased at the fastest pace since April 2024, reportedly fuelled by efficiency gains, favourable underlying demand, and higher sales volumes. This acceleration was solely led by intermediate goods makers, however, with slowdowns in the consumer and capital goods segments, S&P Global said.

 

June also saw a quicker upturn in new order inflows with the rate of expansion the strongest in close to a year. Firms noted strengthening demand from across the globe, with the US mentioned more frequently, the report said. Sector data, S&P Global said, indicated faster increases in international orders in the consumer, intermediate and investment goods categories.

 

The upbeat activity in June was also on the back of easing inflation, with cost inflation easing to its lowest since February, being relatively negligible. "Producer prices rose markedly, however, as demand buoyancy allowed firms to pass on higher freight, labour and metal costs to clients," S&P Global said.

 

Compiler S&P Global said the outlook for the Indian manufacturing sector remained positive in June, but uncertainties surrounding competition, inflation and changes in consumer preferences weighed on sentiment.  End

 

Reported by Priyasmita Dutta

Edited by Avishek Dutta

 

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