India's manufacturing PMI eases to 53.5 in July, from 54.2 in June, HSBC data shows

Indias manufacturing activity remained in expansion territory in July with the HSBC India Manufacturing Purchasing Managers Index PMI coming in at 535 due to resilient demand and stronger export orders as per data released on MondayThis performance has indicated a continued improvement in operating conditions as the index remained above the 50mark that separates expansion from contraction However the HSBC data highlighted that the pace of growth eased from 542 in JunePranjul Bhandari Chief India Economist at HSBC said improving supplier delivery times signalled a continued easing of supplychain bottlenecks although geopolitical developments could pose risksMeanwhile output and new export orders strengthened pointing to resilient demand particularly from overseas markets Price pressures also shifted input cost inflation moderated but output charge inflation accelerated indicating firms are once again passing through price increases to protect margins she saidManufacturers reported sustained growth in new orders and output during the month with firms citing advertising efforts and demand resilience as factors supporting salesHowever survey participants also pointed to challenging market conditions and softer client interest for certain productsAccording to HSBC India a major positive takeaway from the survey was a marked acceleration in export ordersCompanies reported stronger demand from markets including Canada Egypt Indonesia Kenya Nepal South Africa Thailand and the UAEWith sales continuing to rise manufacturers increased production levels in JulyIn addition intermediate and capital goods producers recorded stronger growth in output and new orders while the consumer goods segment witnessed comparatively softer expansionFirms also continued to rebuild inventories amid improving supplychain conditions Input delivery times shortened at a near surveyrecord pace helping companies increase stocks of purchasesMeanwhile inventories of finished goods also rose recording the sharpest increase in more than 11 yearsDespite the improvement in demand conditions hiring activity moderated Employment growth slowed and expanded at the weakest pace in the current 29month period of job creationAdditionally cost pressures eased during the month with input inflation falling to a fivemonth lowThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever