FX.co ★ India Manufacturing Growth Revised Lower

India's HSBC Manufacturing PMI slipped to 54.2 in June 2026 from 55.0 in May, and was revised down from the preliminary estimate of 54.5. This marked the second-weakest improvement in factory activity since mid-2022. Growth in both output and new orders slowed to some of the lowest rates seen in four years, while export orders increased at their softest pace since March 2023 amid muted demand in several European markets.

Softer demand also translated into more moderate increases in purchasing activity, employment, and input inventories. In contrast, stocks of finished goods declined at the fastest rate in six months, as firms adjusted production more closely to current demand conditions.

Cost pressures eased during the month. Input price inflation fell to a four-month low, and output charge inflation slowed to a three-month low, reducing the need for aggressive price hikes. Meanwhile, supplier delivery times improved only slightly, and business confidence weakened to a five-month low as concerns about demand and broader market conditions dampened the outlook.