Near 5-year low! India’s manufacturing growth slows, but HSBC PMI stays in expansion territory

India's HSBC Manufacturing PMI fell to 53.5 in July from 54.2 in June, the lowest since August 2021.

Despite slower domestic demand, export orders grew in July, with sales to Canada, Egypt, Indonesia, Kenya, Nepal, South Africa, Thailand, and the UAE.

Input cost inflation moderated, but output charge inflation accelerated as firms passed through price increases to protect margins.

Employment growth slowed for a third straight month, with hiring expanding at its weakest pace in the current 29-month sequence.

Supply chain conditions improved, with delivery times shortening and inventories of raw materials and finished goods increasing.