The S&P Global HSBC India Manufacturing Purchasing Managers’ Index (PMI) fell to 53.5 in July from 54.2 in June, its lowest reading since August 2021, and slightly below a preliminary estimate of 53.9.
A PMI reading above 50.0 indicates growth in activity.
New orders – a key gauge for demand – rose at the second-weakest rate in over four years as challenging market conditions and reduced client interest weighed on sales growth.
Export orders rose at the fastest pace since April but remained modest after falling to a 39-month low in June.
The pace of output growth was broadly unchanged from June. Consumer goods was a weak spot while intermediate and capital goods makers fared better.
Hiring increased for a 29th straight month but at its slowest pace in that entire period.Input cost inflation eased to a five-month low in July even as transportation costs continued to rise. Selling prices increased only modestly, at a rate broadly in line with June, limiting the burden passed on to customers.
Business confidence edged up from June’s recent low, with firms citing positive expectations around demand and infrastructure projects.