India Manufacturing PMI Eases Marginally to 58.1 in July

1 Aug 2024 , 12:08 PM

Manufacturing activity in India moderated marginally in July from a month ago, mainly on account of softer increases in new orders and output, according to S&P Global.

The HSBC India Manufacturing Purchasing Managers’ Index moderated to 58.1 in July from 58.3 in June. The manufacturing PMI for July is lower than 58.5 projected in the flash manufacturing PMI for the month.

A PMI reading of above 50 indicates an overall increase compared to the previous month and below 50 indicates an overall decrease.

The latest results showed one of the fastest increases in international sales for over 13 years and a robust round of job creation, S&P Global said.

The demand exerted pressure on prices with input costs rising at one of the quickest rates in nearly two years. Consequently, selling prices increased by their steepest pace since October, it said.

“The continuous increase in the output price index, driven by input and labour cost pressure, may signal further inflationary pressure in the economy,” HSBC Chief Economist Pranjul Bhandari said.

HSBC India Manufacturing PMI, compiled by S&P Global, is based on responses of purchasing managers from a panel of around 400 manufacturers.