Financial News: India Manufacturing Growth Eases In June

India Manufacturing Growth Eases In June

07/01/2026 - 02:29:00 (RTTNews)

(RTTNews) - India's manufacturing growth moderated in June as new orders and output rose at the weakest pace in four years, final survey data from S&P Global showed on Wednesday.

The HSBC manufacturing purchasing managers' index dropped to 54.2 in June from 55.0 in May. The flash score was 54.5. Nonetheless, a reading above 50 indicates expansion in the sector.

With the exception of March, rates of increase in both output and new orders were the weakest seen in four years, the survey said.

The demand conditions were affected by subdued client appetite for their products and fierce market competition. The growth in foreign demand was the slowest in 39 months amid subdued sales to some European markets.

In line with weaker new order growth, firms raised their selling prices at the slowest pace in three months. Similarly, cost pressures eased to the lowest level in four months.

Indian goods producers scaled back purchasing activity in June, receding to its weakest in two-and-a-half years. As a result, employment expanded at the weakest rate in 2026 so far.

Looking ahead, concerns over demand and market conditions dampened business sentiment to a 5-month low in June. The proportion of firms forecasting output growth in the year ahead halved since May, with a large share of manufacturers signaling neutral expectations.

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