India’s factory activity surged in July, with the HSBC Manufacturing Purchasing Managers’ Index (PMI) climbing to 59.1, up from 58.4 in June. This marks the strongest reading since March 2024, driven by robust growth in new orders, output, and stock purchases.
The jump reflects sustained demand conditions and effective marketing strategies. Output growth hit a 15-month high, led by the intermediate goods segment, while overall sales recorded their sharpest increase in nearly five years.
Despite the positive momentum, business confidence slipped to a three-year low, as manufacturers flagged concerns about competition and cost pressures. Employment gains were modest, with 93% of firms reporting adequate staffing levels. Input costs rose for materials like aluminium, leather, rubber, and steel, but remained below long-term averages. Output prices also rose marginally amid steady demand.
Inventory levels dropped as firms relied on existing stocks to meet sales, even as purchasing remained strong.
Disclaimer: The HSBC India Manufacturing PMI® is compiled by S&P Global and reflects survey responses from 400 manufacturers. A reading above 50 indicates expansion.
