Some Cheers ! India’s Manufacturing Sector Growth Strengthened In July To A 16-Month High Of 59.1

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India’s manufacturing sector growth strengthened in July to a 16-month high of 59.1, supported by faster increases in new orders and output amid favourable demand conditions, a monthly survey said .

The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index rose from 58.4 in June to 59.1 in July, signalling the strongest improvement in the health of the sector since March 2024.

In the Purchasing Managers’ Index (PMI) parlance, a print above 50 means expansion, while a score below 50 denotes contraction.

“India recorded a 59.1 manufacturing PMI in July, up from 58.4 during the prior month.

“This marked a 16-month high for the Indian manufacturing sector, which benefited from strong growth in new orders and output,” Pranjul Bhandari, Chief India Economist at HSBC, said.

As per the survey, 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.

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.

“… business confidence fell to its lowest level in three years due to concerns over competition and inflation.