HSBC India Manufacturing PMI®
The HSBC India Manufacturing Purchasing Managers' Index declined to 54.2 in June 2026 from 55.0 in May, representing the second-weakest improvement in the health of the manufacturing sector since mid-2022, though it still indicated strong growth aligned with the long-run series average. The survey data was collected between 10-24 June 2026 from approximately 400 manufacturers stratified by sector and company size.
Manufacturing performance showed significant cooling across multiple dimensions. Growth rates for new orders and output were the weakest seen in four years, with the exception of March. The slowdown was primarily driven by capital goods, which experienced a notable fall in growth rates, contrasting with accelerations at consumer and intermediate goods makers. International sales increased at the softest pace in 39 months, with reports of subdued sales to some European markets. Employment expanded at the weakest rate in 2026 so far, while backlogs of work remained broadly unchanged due to a general absence of capacity pressures.
Price pressures showed notable easing in June. Input cost inflation receded to the slowest increase since February, though survey participants continued to cite greater prices for chemicals, electronic items, gas, metals, petroleum products, plastics, rubber, and wood. Output charges rose to a moderate degree that was the least pronounced in three months, as producers became more reluctant to lift fees amid fading demand growth.
Inventory management reflected the cooling demand conditions. Input buying growth lost momentum, receding to its weakest in two-and-a-half years, resulting in stocks of purchases rising at a softer pace. Finished goods inventories showed an outright fall—the fastest in six months—ending a two-month period of accumulation, which firms attributed to better alignment of production and stocks with current demand conditions.
Business sentiment dampened significantly, with the overall degree of optimism retreating to a five-month low. The proportion of firms forecasting output growth in the year ahead halved since May, with a large share of manufacturers signaling neutral expectations due to concerns over demand and market conditions. Supplier delivery times shortened to the least extent in 15 months, with the respective seasonally adjusted index moving closer to the 50.0 no-change mark.