Updated
Updated · WTVB · Jul 1
India's Manufacturing PMI Falls to 54.2 as Export Demand from Europe Weakens
Updated
Updated · WTVB · Jul 1

India's Manufacturing PMI Falls to 54.2 as Export Demand from Europe Weakens

3 articles · Updated · WTVB · Jul 1

Summary

  • India’s factory activity slowed to 54.2 in June from 55.0 in May, the second-weakest expansion since mid-2022 and below the 54.5 flash estimate.
  • New orders grew at their second-slowest pace since June 2022, while export sales rose at the weakest rate in 39 months as firms cited subdued demand from European clients.
  • Output and hiring also lost momentum: production expanded at its second-slowest rate since mid-2022, employment grew at its weakest pace this year, and 97% of firms kept headcount unchanged.
  • Cost pressures eased, with input inflation at a four-month low and output charges rising at the slowest rate in three months; 93% of companies left prices unchanged.
  • Business confidence slipped to a five-month low, signaling manufacturers remain wary of demand and market conditions even with PMI still above the 50 growth threshold.

Insights

With manufacturing slowing but forecasts bullish, is India's 'Make in India' dream facing a reality check?
Despite major government reforms, why can’t India's manufacturing sector escape its cycle of sluggish growth and weak exports?