India's HSBC Flash Manufacturing PMI slipped to 53.9 in July 2026 from 54.2 in June, indicating a slower, below-trend improvement in factory conditions, according to preliminary estimates. This was the weakest pace of expansion since March 2025. Even so, growth in both output and new orders regained some of the momentum lost in prior months. Export demand also strengthened, with the seasonally adjusted export index climbing by nearly four points.
Manufacturers increased their purchasing activity, and a further improvement in supplier performance underpinned a quicker rise in input inventories. Stocks of finished goods returned to growth after contracting in June. Employment continued to expand, and the volume of unfinished work rose further during the month.
On the price front, both input cost inflation and output price inflation accelerated. At the same time, manufacturers became more optimistic about the outlook for the coming year, with business confidence improving compared with June.
