Manufacturing accelerates to 14-month high

Blitz Bureau

NEW DELHI: India’s manufacturing activity accelerated to a 14-month high in June, triggered by a surge in international sales that boosted production and led to record-breaking hiring, according to a latest survey. The HSBC India Manufacturing Purchasing Managers’ Index, compiled by S&P Global, rose to 58.4 in June from May’s 57.6. The headline figure was above its long-run average of 54.1 and pointed to a substantial improvement in the health of the sector.

“Companies also welcomed one of the fastest increases in external orders in over 20 years of survey history. Goods producers lifted input buying to the greatest extent in 14 months, which supported a further expansion in stocks of purchases,” the survey stated. Production volumes increased at the fastest pace since April 2024, fuelled by efficiency gains, demand and greater sales volumes. The acceleration was led by intermediate goods makers, however, with slowdowns in the consumer and capital goods segments.

“Growth of new export orders gained considerable momentum in June. The rate of expansion was the third-highest since data collection started in March 2005. Firms noted strengthening demand from across the globe, with the US mentioned more frequently,” said the survey. Having stagnated in May, outstanding business volumes increased in June. Coupled with robust sales, this boosted hiring among manufacturers. Employment rose at a survey-record pace, with panellists mostly pointing to short-term recruitment.

“Robust end-demand fuelled expansions in output, new orders, and job creation,” said Pranjul Bhandari, chief India economist at HSBC.

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