India’s HSBC Manufacturing PMI slipped to 54.5 in June 2026, a three‑month low, from 55.0 in May, according to preliminary estimates. The pace of manufacturing growth slowed as demand softened and cost pressures remained elevated, constraining output expansion.
New orders continued to rise, but at a reduced pace, with firms pointing to stronger competition and muted demand both at home and abroad. Export orders increased at their slowest rate since March 2023.
Employment grew only marginally, marking the weakest hiring momentum in six months, as manufacturers aligned staffing levels with softer demand. Backlogs of work were broadly unchanged.
Purchasing activity expanded at its slowest rate in two and a half years, leading to only a modest build-up of input inventories and an outright decline in stocks of finished goods.
Cost pressures remained elevated, keeping an upward bias on prices. While business confidence stayed in positive territory, it fell to its lowest level in nearly four years.
