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Manufacturing at 16-Month High, But Confidence Low
August 02, 2025
|Mint Bangalore
India's manufacturing sector activity rose to a 16-month high in July on expansion in output and new orders, a private survey showed on Friday. However, business confidence fell to its lowest level in three years due to concerns over competition and inflation.
The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 59.1 in July, up from 58.4 in June. A reading above 50 indicates expansion. "Firms bought extra inputs to broadly the same extent as June, however, whilst job creation receded to the weakest since November 2024. Meanwhile, business confidence retreated to its lowest level in three years," the survey said.
It said cost pressures intensified, though remained negligible by historical standards, while the rise in selling prices was stronger than the long-run series average.
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