Industry Odisha Bureau, Aug 4: Even though India’s manufacturing sector reportedly expanded last month, it has reportedly been at its slowest pace in nearly five years.
As per media reports, “London-headquartered British universal bank and financial services group HSBC India Manufacturing Purchasing Managers’ Index (PMI) fell to 53.5 in July from 54.2 in June 2026, i.e. lowest since August 2021, while new orders growth posted second weakest in over four years, and the employment growth was gauged slowest in 29 months, i.e. third straight monthly decline.”
Media reports, citing analyses by HSBC on the main reasons behind the slump, have stated, “While challenging market conditions and weaker client interest for key products weighed on sales, growth eased sharply with consumer goods seeing notably slower increases in orders and output, input purchases expanded at the slowest pace in 31 months, and hiring weakened for the third consecutive month.”
Notwithstanding that, media reports, citing analyses by HSBC on the bright spots, have also stated that, “New export orders rose at a faster pace, with gains from Canada, Egypt, Indonesia, Kenya, Nepal, South Africa, Thailand, and the UAE. Delivery times shortened at a near‑record pace, inventories of raw materials and finished goods rose at the fastest rate in over 11 years, and input‑cost inflation eased to a five‑month low although transport costs remained elevated.”
Media reports, citing HSBC India Manufacturing PMI, have stated in a nutshell that, “July’s PMI shows India’s manufacturing still growing, but momentum has slowed to a five‑year low due to weaker domestic demand and softer hiring, even as export strength and improved supply chains provide support.”
