BENGALURU, Aug 3 (Reuters) – India’s manufacturing sector expanded at its slowest pace in nearly five years in July as overall demand remained soft while a third consecutive month of slowing job creation also signalled a loss of momentum, a survey showed.
• 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.
(Reporting by Shaloo Shrivastava; Editing by Jacqueline Wong)
