June manufacturing growth among weakest in 4 years: S&P Global

India's manufacturing sector growth slowed sharply in June, with activity expanding at one of the weakest rates seen in four years, according to the S&P Global Manufacturing Purchasing Managers' Index (PMI) survey released on Wednesday.The manufacturing PMI fell to 54.2 in June from 55.0 in May, marking the second-lowest reading since mid-2022. A PMI reading above 50 indicates expansion, while a reading below 50 signals contraction.
According to S&P Global the growth in both output and new orders was among the weakest recorded in four years, reflecting subdued domestic and overseas demand as well as intense market competition.HSBC Chief India Economist Pranjul Bhandari said the slowdown was visible across output, new orders, export orders and employment, with international sales posting their weakest increase since March 2023. She added that easing input and output price pressures pointed to softer inflation as geopolitical disruptions receded.The survey also showed weakening business sentiment, with the share of firms expecting higher output over the next year dropping sharply and overall optimism falling to a five-month low.Input purchases grew at their slowest pace in two-and-a-half years, while inventories of finished goods declined at the sharpest rate in six months as manufacturers aligned production more closely with current demand conditions.The S&P Global survey is based on responses from around 400 manufacturers across India.

(Business Correspondent)