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India’s manufacturing activity rises to 14-month high of 58.4 in June
Jul-01-2025

India's manufacturing sector witnessed a strong growth in the month of June, reaching a fourteen-month high with improved trends in output and new orders, alongside a record upturn in employment. According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) surged to 58.4 in June from 57.6 in May.

The survey report further noted that production volumes increased at the fastest pace since April 2024, fuelled by efficiency gains, favourable underlying demand and greater sales volumes. This acceleration was solely led by intermediate goods makers, however, with slowdowns in the consumer and capital goods segments. Besides, the growth of new export orders gained considerable momentum in June. The rate of expansion was the third-highest since data collection started in March 2005. 

On the inflation front, input price inflation retreated to a four-month low, despite rising iron and steel costs. The rate of increase was negligible relative to the series average. However, average selling prices rose markedly, as several firms sought to share additional cost burdens (freight, labour and materials) with their clients. In some instances, companies attributed upward revisions to demand buoyancy.

Further, outstanding business volumes increased in June. Coupled with robust sales, this boosted hiring among manufacturers. Also, pre-production inventories rose at a quicker pace than in May, while the surge in buying volumes was the greatest since April 2024. Meanwhile, the outlook for the Indian manufacturing sector remained positive in June. But, uncertainties surrounding competition, inflation and changes in consumer preferences weighed on sentiment.


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