New Delhi, July 1: India’s manufacturing sector experienced growth in June, with the Manufacturing Purchasing Managers’ Index (PMI) standing at 54.2. This information was released in the HSBC Flash India PMI data on Wednesday.
A PMI above 50 indicates an expansion in economic activities, while a figure below that suggests a contraction.
According to the PMI data, the growth in new orders and production slowed this month. Several manufacturers reported an improvement in demand, while others attributed the slowdown to reduced customer demand and increased market competition.
Meanwhile, export demand remained positive this month, although the pace of growth was slower.
Pranjul Bhandari, Chief India Economist at HSBC, noted that the June PMI data indicates a continuous increase in manufacturing activities.
She stated, “This slowdown suggests that demand has slightly decreased following an initial surge due to ongoing conflicts in the Middle East. Growth in output, new orders, export orders, and employment has slowed, while both input and output price indices have declined. This indicates that as geopolitical turmoil subsides, inflationary pressures are also easing.”
The PMI data revealed that inflationary pressures on input and output costs decreased this month.
However, purchasing activities declined, leading to a slower increase in raw material stocks, while finished goods inventory fell as companies adjusted production to meet current demand.
Despite this, employment growth continued in June, albeit at a slower pace.
Earlier PMI data released in June indicated a slight easing in private sector activities in India amid geopolitical tensions, while strong growth in total new orders persisted.
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