Informist, Friday, Aug. 1, 2025

--India Jul manufacturing PMI of 59.1 at 16-month high
--India Jul manufacturing PMI 59.1 vs 58.4 in Jun

NEW DELHI – India's manufacturing sector activity expanded at the highest pace in 16 months in July, with the HSBC India Manufacturing Purchasing Managers' Index rising to 59.1 last month from 58.4 in June, S&P Global said on Friday. "Manufacturing sector conditions in India continued to strengthen in July, with the HSBC PMI climbing to a 16-month high due to faster increases in new orders, output and stocks of purchases," the report said. "Firms bought extra inputs to broadly the same extent as in June, however, whilst job creation receded to the weakest since November 2024. Meanwhile, business confidence retreated to its lowest level in three years," it added.

The final manufacturing PMI print for July is just a notch below the flash figure of 59.2, data for which was released on Jul. 24. A PMI reading of more than 50 denotes expansion in activity, while a print below it shows contraction.

"India recorded a 59.1 manufacturing PMI in July, up from 58.4 during the prior month. This marked a 16-month high for the Indian manufacturing sector, which benefited from strong growth in new orders and output. At the same time, however, business confidence fell to its lowest level in three years due to concerns over competition and inflation," Pranjul Bhandari, chief India economist at HSBC, said.

Supporting the uptick in the headline figure was a sharp and accelerated expansion in new orders placed with Indian goods producers, S&P Global said. "The rise was linked by panellists to favourable demand conditions and successful marketing initiatives. Overall sales rose at the fastest pace in close to five years," S&P Global report said.

Production growth strengthened to a 15-month high in July and outpaced the series trend. S&P Global said granular data showed that the acceleration was confined to the intermediate goods segment as rates of increase slowed elsewhere.

Rising international demand contributed to the overall upturn in total sales but new export orders increased to a lesser extent than in June. "The expansion was nevertheless among the best seen in over 14 years," the report added.

"Indian manufacturers remained confident of a rise in output over the course of the coming 12 months, but the overall level of positive sentiment fell to its lowest mark in three years," it said.

S&P Global said survey members believe competition and inflation are the key concerns. "The survey's price gauges pointed to a mild intensification of inflationary pressures at the start of the second fiscal quarter. Amid reports of greater aluminium, leather, rubber and steel prices, average input costs rose at a faster pace than in June," S&P Global report said. End

Reported by Sagar Sen

Edited by Vandana Hingorani

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