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Informist, Monday, Aug. 3, 2026

 

--India July manufacturing PMI 53.5 vs 54.2 in June

--India July manufacturing of PMI 53.5, lowest since Aug 2021

 

NEW DELHI – India's manufacturing sector activity eased to a near five-year low in July due to a slower pace of growth in new orders curbing input purchasing, S&P Global said on Monday. Some metrics saw growth cooling again, S&P Global, which compiled the PMI, said in a release. The HSBC India Manufacturing Purchasing Managers' Index moderated to 53.5 in July from 54.2 in June.

 

The latest print was the lowest since August 2021, S&P Global said. "Manufacturing conditions improve at a below-trend pace." The final manufacturing purchasing managers' index for June was lower than the flash estimate of 53.9, released on Jul. 24. A purchasing managers' index reading of more than 50 denotes expansion in activity from the previous month, while a print below 50 indicates contraction.

 

The rate of growth in new orders was the second-weakest in over four years. "Consumer goods was a particular area of weakness in July, posting notably softer increases in new orders and output," S&P Global said. While intermediate and capital goods makers reported stronger rates of expansion.

 

Sales were impacted in July due to increasingly challenging market conditions and client interest for key items. "...renewed tensions in the Middle East have raised fresh doubts about how durable these improvements will be," Pranjul Bhandari, chief India economist at HSBC, said in the release.

 

Seeing a slower pace of growth but manufacturers focused on rebuilding reserve buffers by purchasing additional inputs. According to Bhandari, inventories of both inputs and finished goods increased alongside a rise in purchasing volumes, suggesting firms are securing supply and limiting exposure to potential disruption.

 

Firms also noted regain in growth momentum in international sales with demand coming especially from Canada, Egypt, Indonesia, Kenya, Nepal, South Africa, Thailand, and the United Arab Emirates. "Output and new export orders strengthened, pointing to resilient demand, particularly from overseas markets," Bhandari said.

 

In terms of operating capacity, only a small proportion of firms indicated greater backlogs of work. "Operating expenses rose further, especially for transportation, but the overall rate of cost inflation eased to a five-month low," the release said. "Having said that, the overall rate of accumulation was the strongest in a year, albeit only slight overall."

 

The manufaturing industry saw the weakest pace of job creation for the third consecutive month in July. Furthermore, the rate of increase in employment was the slowest in the last 29-month period of uninterrupted growth, S&P Global said.

 

Businesses saw a shift in sentiment in July from a month ago as firms signalled a positive outlook for demand, infrastructure projects, and new client enquiries. Some businesses remain hopeful of market conditions improving and their marketing initiatives such as advertising would pay off, the release said.  End

 

Reported by Shweta

Edited by Akul Nishant Akhoury

 

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