Latest news with #HSBCIndiaManufacturingPurchasingManagers'Index
Business Recorder
01-08-2025
- Business
- Business Recorder
Indian factory growth hits 16-month high, business outlook darkens, PMI shows
BENGALURU: Indian manufacturing growth expanded at its fastest pace in 16 months in July, driven by robust demand, but business confidence fell to a three-year low amid competitive pressures and inflation concerns, a survey showed on Friday. The HSBC India Manufacturing Purchasing Managers' Index, compiled by S&P Global, rose to 59.1 in July from 58.4 in June, slightly below a preliminary reading of 59.2. The index remained well above the 50-mark separating growth from contraction. New orders increased at the fastest pace in nearly five years, buoyed by favourable market conditions and marketing efforts. That propelled output growth to a 15-month high. International demand continued to support overall sales although growth in export orders moderated from June's more than 17-year high. Despite the strong performance, manufacturers' optimism fell to its lowest level since July 2022. Companies cited mounting competition and inflation concerns as key challenges. India's industrial output growth slows to nine-month low in May The contrast between present conditions and future outlook was reflected in hiring patterns with employment increasing at the weakest pace since November 2024. A substantial 93% of manufacturers surveyed indicated their current workforce was adequate for production needs. A recent Reuters poll of independent economists highlighted growing employment concerns. Official government data showed an unemployment rate of 5.6% in June; however, some economists have questioned the accuracy of the measurement methodology. Inflation intensified in July with input costs rising faster as manufacturers faced higher prices for some raw materials. Companies raised selling prices for the 10th consecutive month as they leveraged strong demand to pass on costs. The Reserve Bank of India is poised to hold its key policy rate at 5.50% at its meeting next week, but any acceleration in inflation could affect the outlook on monetary policy. Adding to the uncertainty, U.S. President Donald Trump plans to impose 25% tariffs on Indian goods starting on Friday, a move that could drag on the export sector.
News18
01-08-2025
- Business
- News18
India's Manufacturing Growth In July 2025 Hits 16-Month High On Robust Demand: PMI Data
Last Updated: The HSBC India Manufacturing Purchasing Managers' Index rises to 59.1 in July from 58.4 in June, well above the 50-mark separating growth from contraction. PMI Manufacturing For July 2025: India's manufacturing activity grew at its fastest pace in 16 months in July 2025, boosted by strong demand and robust new orders, according to a private survey released on Friday. The HSBC India Manufacturing Purchasing Managers' Index, compiled by S&P Global, rose to 59.1 in July from 58.4 in June, slightly below a preliminary reading of 59.2. The index remained well above the 50-mark separating growth from contraction. Growth was driven by a sharp surge in new orders, which rose at the fastest rate in nearly five years, thanks to 'favourable market conditions and effective marketing efforts". This, in turn, pushed output growth to a 15-month high. International demand also contributed, though export order growth moderated after hitting a 17-year high in June. However, despite the robust performance, business confidence dipped as companies cite mounting competition and inflation concerns as key challenges. Business confidence among manufacturers dropped to a three-year low. The level of optimism among manufacturers fell to its lowest since July 2022, with many companies highlighting mounting competition and inflation concerns as key challenges. Adding to the caution, a recent Reuters poll of independent economists flagged persistent concerns over job creation. Although the official unemployment rate stood at 5.6% in June, some economists have raised questions over the methodology used in the government's labour data. Inflation pressures also re-emerged in July. Input costs rose more sharply as firms faced higher prices for certain raw materials. Companies responded by raising selling prices for the 10th consecutive month, taking advantage of strong demand to pass on cost pressures. The Reserve Bank of India (RBI) is expected to keep the key repo rate at 5.50% in its upcoming meeting. However, any acceleration in inflation could prompt a re-evaluation of the current monetary stance. Further uncertainty looms on the trade front as US President Donald Trump is set to impose 25% tariffs on Indian goods starting Friday, a move that could weigh on the country's export performance in the coming months. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
India.com
02-07-2025
- Business
- India.com
India's Manufacturing Activity Accelerates To 14-Month High As Exports Surge In June
New Delhi: India's manufacturing activity accelerated to a 14-month high in June, triggered by a surge in international sales that boosted production and led to record-breaking hiring, according to a latest survey. The HSBC India Manufacturing Purchasing Managers' Index, compiled by S&P Global, rose to 58.4 in June from May's 57.6. The headline figure was above its long-run average of 54.1 and pointed to a substantial improvement in the health of the sector. 'Companies also welcomed one of the fastest increases in external orders in over 20 years of survey history. Goods producers lifted input buying to the greatest extent in 14 months, which supported a further expansion in stocks of purchases," the survey stated. Production volumes increased at the fastest pace since April 2024, fuelled by efficiency gains, demand and greater sales volumes. The acceleration was led by intermediate goods makers, however, with slowdowns in the consumer and capital goods segments. "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. Firms noted strengthening demand from across the globe, with the US mentioned more frequently," said the survey. Having stagnated in May, outstanding business volumes increased in June. Coupled with robust sales, this boosted hiring among manufacturers. Employment rose at a survey-record pace, with panellists mostly pointing to short-term recruitment. "Robust end-demand fuelled expansions in output, new orders, and job creation," said Pranjul Bhandari, chief India economist at HSBC. "To keep up with strong demand — particularly from international markets, as evidenced by the substantial rise in new export orders — Indian manufacturing firms had to tap deeper into their inventories, causing the stock of finished goods to continue shrinking. Finally, input prices moderated while average selling prices rose as some manufacturers passed on additional cost burdens to clients," she added. Meanwhile, input price inflation fell to a four-month low, despite rising iron and steel costs as the rate of increase was negligible relative to the series average. 'Average selling prices rose markedly, however, 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," the survey states. Employment increased at a record pace, with most survey panellists recording short-term recruitment. The outlook for the Indian manufacturing sector remained positive in June. That said, uncertainties surrounding competition, inflation and changes in consumer preferences weighed on sentiment, the survey added.
Fibre2Fashion
01-07-2025
- Business
- Fibre2Fashion
India's manufacturing PMI hits 14-month high on strong Q1 growth
India's manufacturing sector closed the first quarter (Q1) of fiscal 2025 (FY25) on a robust footing, as per HSBC India Manufacturing Purchasing Managers' Index (PMI). The seasonally adjusted PMI rose to 58.4 in June—its highest in 14 months—up from 57.6 in May, signalling a substantial improvement in the health of the sector. Meanwhile, cost inflation eased to its lowest mark since February and was relatively negligible. Producer prices rose markedly, however, as demand buoyancy allowed firms to pass on higher freight, labour and metal costs to clients, S&P Global and HSBC said in a press release. India's manufacturing sector ended Q1 FY25 on a strong note, as the manufacturing PMI rose to a 14-month high of 58.4 in June, up from 57.6 in May. Output, new orders, and exportsâ€'especially to the USâ€'accelerated, driving job creation and input purchases. Intermediate goods led growth, input cost inflation eased, and firms raised prices as finished goods inventories continued to shrink. Production volumes rose at the fastest pace since April 2024, driven by efficiency improvements, solid underlying demand, and higher sales volumes. This growth was primarily led by intermediate goods producers, while the consumer and capital goods segments experienced slowdowns. June also witnessed a sharper rise in new order inflows—the strongest rate in nearly a year—supported by enhanced marketing and a notable surge in exports. Export orders accelerated significantly, recording their third-highest growth since data collection began in March 2005. Firms cited increasing global demand, particularly from the United States. Across the board, international sales rose in the consumer, intermediate, and investment goods categories. However, total sales growth was concentrated solely among intermediate goods manufacturers. After stagnating in May, outstanding business volumes grew in June, which, combined with strong sales, fuelled a record increase in employment. Most companies linked this hiring boost to short-term recruitment needs. Input cost inflation fell to a four-month low despite rising iron and steel prices, with the overall rate remaining modest relative to the survey's historical average. Meanwhile, average selling prices rose sharply as firms passed on increased freight, labour, and material costs to customers. In many cases, this pricing adjustment was attributed to strong demand conditions. The surge in new business drove greater purchasing activity and stock accumulation. Pre-production inventories rose more quickly than in May, while input buying reached its highest level since April 2024. In contrast, finished goods inventories declined again, as companies often relied on warehouse stocks to meet the growth in demand. The drop in finished goods inventories was notable by historical standards. Despite rising raw material demand, supplier performance continued to improve, with average lead times shortening to the greatest extent in five months. The outlook for the manufacturing sector remained optimistic in June, although concerns about competitive pressures, inflation, and shifting consumer preferences tempered overall business confidence, added the release. 'India's manufacturing PMI reached a fourteen-month high of 58.4 in June. Robust end-demand fuelled expansions in output, new orders, and job creation. To keep up with strong demand — particularly from international markets, as evidenced by the substantial rise in new export orders — Indian manufacturing firms had to tap deeper into their inventories, causing the stock of finished goods to continue shrinking. Finally, input prices moderated while average selling prices rose as some manufacturers passed on additional cost burdens to clients,' said Pranjul Bhandari, chief India economist at HSBC. Fibre2Fashion News Desk (SG)
Business Times
01-07-2025
- Business
- Business Times
India's factory growth hits 14-month high on exports surge, PMI shows
[BENGALURU] India's manufacturing activity accelerated to a 14-month high in June, driven by a substantial rise in international sales that boosted output and sparked record-breaking hiring, a business survey showed on Tuesday. The HSBC India Manufacturing Purchasing Managers' Index, compiled by S&P Global, climbed to 58.4 in June from May's 57.6 and in line with a preliminary estimate released last week. The PMI threshold of 50.0 separates growth from contraction in activity. 'Robust end-demand fuelled expansions in output, new orders, and job creation,' said Pranjul Bhandari, chief India economist at HSBC. Factory output grew at its fastest pace since April last year, supported by strong demand. Incoming new orders increased at the steepest rate in nearly a year, with international demand providing significant momentum. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Export orders recorded the third-highest growth rate since data collection began in March 2005, with US markets frequently cited as a source of strength. The latest positive readings come amid rising uncertainty from US tariffs as India's trade talks with the largest economy in the world have hit a roadblock ahead of the July 9 deadline due to disagreements on duties for auto components, steel and farm goods, according to government sources. Strong demand prompted manufacturers to hire additional staff at an unprecedented pace - the fastest since the survey began over two decades ago. Price pressures for manufacturers eased in June, with input cost inflation slowing to its lowest level in four months despite some increases in iron and steel prices. The moderation was significant when compared to historical trends. At the same time, companies continued to raise their selling prices markedly - albeit at a softer pace than in the previous month - passing on expenses such as freight, labour and material costs to customers. Business confidence remained positive but dipped slightly to an eight-month low as some manufacturers expressed concerns about competition, inflation and potential shifts in consumer preferences. REUTERS
