Manufacturing PMI rises to 14-month high on buoyant export orders Business News & Hub

Manufacturing activity rose to a 14-month high in June 2025 on the back of strong export orders, according to a private sector survey.

The HSBC India Manufacturing Purchasing Managers’ Index rose to 58.4 in June, up from 57.6 in May. The performance in June was the highest since April 2024 and well above the Index’s long-run average of 54.1.

“The manufacturing sector experienced a strong end to the first fiscal quarter, marked by improved trends in output and new orders, alongside a record upturn in employment,” the report said. “Companies also welcomed one of the fastest increases in external orders in the over 20 years of survey history.”

The analysis further added that manufacturing production volumes grew at their fastest pace since April 2024, with survey respondents saying this was fuelled by efficiency gains, favourable underlying demand, and greater sales volumes. 

However, the report added that this acceleration was solely driven by intermediate goods makers, with the consumer and capital goods segments both witnessing a slowdown. 

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

Notably, the report also said that input price inflation fell to a four-month low, despite rising iron and steel costs, while selling prices rose. 

“Average selling prices rose markedly, however, as several firms sought to share additional cost burdens (freight, labour and materials) with their clients,” the report said. “In some instances, companies attributed upward revisions to demand buoyancy.”