India: Manufacturing PMI falls in July but remains strong by historical standards
The HSBC India Manufacturing Purchasing Managers’ Index (PMI) ebbed to 58.1 in July from 58.3 in June. As a result, the index remained above the 50.0 no-change threshold, signalling a slightly softer—albeit still significant—improvement in manufacturing-sector operating conditions compared to the previous month.
July’s slight dip was due to softening growth in new orders, output and job creation, though these three indicators were still robust by historical standards. In addition, international sales expanded at one of the fastest rates in over 13 years.
Input costs rose significantly, leading to the steepest increase in selling prices since October 2013. Finally, business sentiment remained broadly unchanged from June, indicating a sustained optimistic outlook among Indian manufacturers.