Pune Media

Business News | India’s Manufacturing PMI Hits 16-month High at 59.1 in July on Strong Demand, Output

New Delhi [India], August 1 (ANI): India’s manufacturing activity gained further momentum in July, rising to a 16-month high of 59.1 from 58.4 in June, driven by stronger growth in new orders, output, and inventory buildup, according to the data of HSBC India Manufacturing Purchasing Managers’ Index (PMI).

The rating agency said that firms bought extra inputs to broadly the same extent as in June, however, whilst job creation receded to the weakest since November 2024.

Also Read | Will It Rain in London During IND vs ENG 5th Test 2025 Day 2? Check Live Weather Forecast.

Meanwhile, business confidence retreated to its lowest level in three years.

“Rising from 58.4 in June to 59.1 in July, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI®) – a single-figure indicator of sector performance – signalled the strongest improvement in the health of the sector since March 2024,” firm said.

Also Read | ‘How Can We Interfere?’: Supreme Court Declines Plea to Bring Political Parties Under Anti-Sexual Harassment Law.

According to the HSBC PMI report, the growth in new orders was the sharpest in nearly five years, driven by robust domestic demand and successful marketing efforts.

This surge in demand led to a 15-month high in production output, with intermediate goods producers seeing the strongest acceleration, even as other segments experienced slower growth.

The report, however, highlighted that the cost pressures have intensified during the month, though they remained modest by historical standards.

On the pricing front, the increase in selling prices was higher than the long-run average, indicating that firms passed on some of the input cost pressures to customers.

While international demand also contributed to the overall increase in sales, export orders grew at a slower pace compared to June, though the growth remained one of the strongest in over 14 years.

The report added that companies continued to hire extra staff at the start of the second fiscal quarter, but they did so to the least extent in eight months.

Despite this strong performance, some concerns emerged. Job creation weakened, with July recording the slowest pace of employment growth since November 2024.

“Among the main headwinds to growth, survey members listed competition and inflation concerns,” the report added.

On the purchasing side, the report added that the manufacturers increased input buying to rebuild inventories.

Although the pace of buying was slightly slower than in June, it was still the second-fastest in the past 15 months.

Improved supplier performance also helped boost stocks of purchases, which grew at their strongest rate in 15 months.

However, finished goods inventories continued to decline in July, as companies met demand by selling from existing stock. (ANI)

(The above story is verified and authored by ANI staff, ANI is South Asia’s leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of Pune Media)



Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.

Aggregated From –

Comments are closed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More