Latest news with #HSBCIndiaManufacturingPurchasingManagers'Index
Business Times
8 hours ago
- Business
- Business Times
India's factory growth hits 14-month high on exports surge, PMI shows
[BENGALURU] India's manufacturing activity accelerated to a 14-month high in June, driven by a substantial rise in international sales that boosted output and sparked record-breaking hiring, a business survey showed on Tuesday. The HSBC India Manufacturing Purchasing Managers' Index, compiled by S&P Global, climbed to 58.4 in June from May's 57.6 and in line with a preliminary estimate released last week. The PMI threshold of 50.0 separates growth from contraction in activity. 'Robust end-demand fuelled expansions in output, new orders, and job creation,' said Pranjul Bhandari, chief India economist at HSBC. Factory output grew at its fastest pace since April last year, supported by strong demand. Incoming new orders increased at the steepest rate in nearly a year, with international demand providing significant momentum. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Export orders recorded the third-highest growth rate since data collection began in March 2005, with US markets frequently cited as a source of strength. The latest positive readings come amid rising uncertainty from US tariffs as India's trade talks with the largest economy in the world have hit a roadblock ahead of the July 9 deadline due to disagreements on duties for auto components, steel and farm goods, according to government sources. Strong demand prompted manufacturers to hire additional staff at an unprecedented pace - the fastest since the survey began over two decades ago. Price pressures for manufacturers eased in June, with input cost inflation slowing to its lowest level in four months despite some increases in iron and steel prices. The moderation was significant when compared to historical trends. At the same time, companies continued to raise their selling prices markedly - albeit at a softer pace than in the previous month - passing on expenses such as freight, labour and material costs to customers. Business confidence remained positive but dipped slightly to an eight-month low as some manufacturers expressed concerns about competition, inflation and potential shifts in consumer preferences. REUTERS
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Business Standard
8 hours ago
- Business
- Business Standard
Manufacturing PMI at 14-month high of 58.4 in June driven by strong demand
India's manufacturing activity rose to 58.4 in June 2025, up from 57.6 in May, marking a 14-month high, the HSBC India Manufacturing Purchasing Managers' Index (PMI) showed, according to data compiled by S&P Global on Tuesday. Manufacturing PMI from Dec 2024 to June 2025 Export orders drive manufacturing growth in June New export orders saw their third-highest growth rate since the survey's inception in 2005, with more orders from the US in June, the report said. Export order growth was seen across all product categories, including consumer, intermediate, and capital goods. Meanwhile, output volumes also rose at the quickest pace since April 2024, but growth was not evenly distributed across sectors. Intermediate goods producers led growth in terms of volume, while the consumer and capital goods sectors saw moderate growth. The upswing in new orders was driven by marketing initiatives and increased export sales, the survey showed. Manufacturers benefited from the lowest input cost inflation since February, despite rising prices for iron and steel. Commenting on the growth, Chief India Economist at HSBC Pranjul Bhandari said, "Robust end-demand fuelled expansions in output, new orders, and job creation. To keep up with strong demand — particularly from international markets, as evidenced by the substantial rise in new export orders — Indian manufacturing firms had to tap deeper into their inventories, causing the stock of finished goods to continue shrinking. Finally, input prices moderated while average selling prices rose as some manufacturers passed on additional cost burdens to clients." Employment jumps amid short-term hiring Employment levels also surged in June. The survey noted that the month marked the highest pace of hiring in its history. This rise, however, was largely attributed to short-term hiring to meet rising workloads, as backlogs returned to growth after stagnating in May. Industrial production falls to nine-month low in April Meanwhile, India's industrial output grew by just 1.2 per cent in May, marking the slowest pace in nine months, government data showed on Monday. Electricity generation fell sharply by 5.8 per cent, dragged down by an early monsoon. This was the first contraction in nine months and the steepest since June 2020. Mining output also declined by 0.1 per cent, recording its second straight monthly fall. RBI cuts rate by 100 bps Between February and June, the Reserve Bank of India (RBI) has cut the policy repo rate by 100 basis points, bringing it down to 5.5 per cent, as inflation softened within the central bank's comfort zone. The rate cut came as a relief for borrowers, with expectations of lower EMIs on long-term loans, particularly benefiting homebuyers. The RBI has revised its retail inflation forecast for the current financial year to 3.7 per cent, down from its earlier projection of 4 per cent in April. Meanwhile, the central bank has retained its Gross Domestic Product (GDP) growth forecast at 6.5 per cent for 2025-26. The quarterly growth projections stand at 2.9 per cent for April–June, 3.4 per cent for July–September, 3.9 per cent for October–December, and 4.4 per cent for January–March. What is PMI? The PMI is an economic indicator of business activity within a sector. It tracks production levels, new orders, employment, supplier performance, and inventory, based on responses from purchasing managers. A reading over 50 shows expansion in the sector, while a reading below this mark indicates a contraction in the sector. A reading of 50 suggests no change in activity.
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Business Standard
8 hours ago
- Business
- Business Standard
June Manufacturing PMI rises to 14-month high of 58.4 on strong demand
India's manufacturing activity rose to 58.4 in June 2025, up from 57.6 in May, marking a 14-month high, the HSBC India Manufacturing Purchasing Managers' Index (PMI) showed, according to data compiled by S&P Global on Tuesday. Commenting on the growth, Chief India Economist at HSBC Pranjul Bhandari said, "Robust end-demand fuelled expansions in output, new orders, and job creation. To keep up with strong demand — particularly from international markets, as evidenced by the substantial rise in new export orders — Indian manufacturing firms had to tap deeper into their inventories, causing the stock of finished goods to continue shrinking. Finally, input prices moderated while average selling prices rose as some manufacturers passed on additional cost burdens to clients." Industrial production falls to nine-month low in April Meanwhile, India's industrial output grew by just 1.2 per cent in May, marking the slowest pace in nine months, government data showed on Monday. Electricity generation fell sharply by 5.8 per cent, dragged down by an early monsoon. This was the first contraction in nine months and the steepest since June 2020. Mining output also declined by 0.1 per cent, recording its second straight monthly fall. RBI cuts rate by 100 bps Between February and June, the Reserve Bank of India (RBI) has cut the policy repo rate by 100 basis points, bringing it down to 5.5 per cent, as inflation softened within the central bank's comfort zone. The rate cut came as a relief for borrowers, with expectations of lower EMIs on long-term loans, particularly benefiting homebuyers. The RBI has revised its retail inflation forecast for the current financial year to 3.7 per cent, down from its earlier projection of 4 per cent in April. Meanwhile, the central bank has retained its Gross Domestic Product (GDP) growth forecast at 6.5 per cent for 2025-26. The quarterly growth projections stand at 2.9 per cent for April–June, 3.4 per cent for July–September, 3.9 per cent for October–December, and 4.4 per cent for January–March. What is PMI? The PMI is an economic indicator of business activity within a sector. It tracks production levels, new orders, employment, supplier performance, and inventory, based on responses from purchasing managers. A reading over 50 shows expansion in the sector, while a reading below this mark indicates a contraction in the sector. A reading of 50 suggests no change in activity.
Time of India
9 hours ago
- Business
- Time of India
India's factory growth hits 14-month high on exports surge, PMI shows
BENGALURU: India's manufacturing activity accelerated to a 14-month high in June, driven by a substantial rise in international sales that boosted output and sparked record-breaking hiring, a business survey showed on Tuesday. The HSBC India Manufacturing Purchasing Managers' Index , compiled by S&P Global, climbed to 58.4 in June from May's 57.6 and in line with a preliminary estimate released last week. The PMI threshold of 50.0 separates growth from contraction in activity. Play Video Play Skip Backward Skip Forward Mute Current Time 0:00 / Duration 0:00 Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Key Components of the DDPP (See List) Decarbonization Pathways | Search Ads Read More Undo "Robust end-demand fuelled expansions in output, new orders, and job creation," said Pranjul Bhandari, chief India economist at HSBC. Factory output grew at its fastest pace since April last year, supported by strong demand. Live Events Incoming new orders increased at the steepest rate in nearly a year, with international demand providing significant momentum. Export orders recorded the third-highest growth rate since data collection began in March 2005, with U.S. markets frequently cited as a source of strength. The latest positive readings come amid rising uncertainty from U.S. tariffs as India's trade talks with the largest economy in the world have hit a roadblock ahead of the July 9 deadline due to disagreements on duties for auto components, steel and farm goods, according to government sources. Strong demand prompted manufacturers to hire additional staff at an unprecedented pace - the fastest since the survey began over two decades ago. Price pressures for manufacturers eased in June, with input cost inflation slowing to its lowest level in four months despite some increases in iron and steel prices. The moderation was significant when compared to historical trends. At the same time, companies continued to raise their selling prices markedly - albeit at a softer pace than in the previous month - passing on expenses such as freight, labour and material costs to customers. Business confidence remained positive but dipped slightly to an eight-month low as some manufacturers expressed concerns about competition, inflation and potential shifts in consumer preferences.
Mint
a day ago
- Business
- Mint
India's industrial production rises 1.2% in May
New Delhi: India's industrial production rose 1.2% in May, provisional data released by the ministry of statistics and programme implementation on Monday showed. In April, industrial production grew by 2.7% annually, a six-month low and lower than the 3% increase in March. Experts had observed that India's industrial growth has been subdued this year, with consumer demand significantly shaping the economic landscape. On an annual basis, IIP growth stood at 4% in FY25, lower than the 5.9% pace in FY24. The output of eight core infrastructure sectors, which account for two-fifths of India's industrial output, expanded by 0.7% annually in May, its slowest in nine months, provisional data released by the commerce ministry on 20 June showed. India's manufacturing activity dropped to a three-month low in May as growth in new orders and output softened, according to the HSBC India Manufacturing Purchasing Managers' Index compiled by S&P Global earlier in June.
