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India's manufacturing sector strengthens further in July with PMI at 59.1
Aug-01-2025

India's manufacturing sector continued to strengthen in the month of July, aided by faster increases in new orders, output and stocks of purchases. According to the survey report, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) surged to 59.1 in July from 58.4 in June, signaling the strongest improvement in the health of the sector since March 2024.

The report noted that overall sales rose at the fastest pace in close to five years. Subsequently, production growth strengthened to a 15-month high in July and outpaced the series trend. This acceleration was confined to the intermediate goods segment as rates of increase slowed elsewhere. Although rising international demand from across the globe contributed to the overall upturn in total sales, new export orders increased to a lesser extent than in June. The expansion was nevertheless among the best seen in over 14 years.

Cost pressures intensified, though remained negligible by historical standards, while the latest increase in selling prices was stronger than the long-run series average. Companies continued to hire extra staff at the start of the second fiscal quarter, but they did so to the least extent in eight months. Indeed, outstanding business volumes increased only marginally in July. Further, Indian manufacturers remained confident of a rise in output over the course of the coming 12 months, but the overall level of positive sentiment fell to its lowest mark in three years.


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