India’s manufacturing sector expanded at its second-slowest pace in four years in June, according to the HSBC India Manufacturing Purchasing Managers’ Index (PMI). The PMI fell to 54.2 in June from May’s 55.0, slightly lower than a preliminary estimate of 54.5.
Slowing Demand
New orders, a key measure of demand, rose at their second-weakest rate since June 2022 after hitting a three-month high in May. Export orders were notably softer, with firms citing subdued demand from European clients.
Output also expanded at the second-slowest rate since mid-2022, as capital goods dragged. As demand lost momentum, firms were more reluctant to raise prices. Output charges rose at their slowest rate in three months, and 93% of companies left fees unchanged from May.
Hiring reflected the softer demand environment, with employment growing at its weakest pace this year. Concerns over demand and market conditions dampened business confidence to a five-month low.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
