India's manufacturing PMI decreased slightly to 58.1 in July, indicating robust growth and cost inflation.
India's manufacturing sector experienced robust growth in July, as indicated by a slight decrease in the HSBC Purchasing Managers' Index (PMI) to 58.1 from 58.3 in June. Despite the marginal decline, the PMI remains above the 50-mark, signaling expansion in the sector. High demand led to increases in both input and output prices, potentially signaling further inflationary pressure in the economy. Indian manufacturers faced cost inflation, the strongest in nearly 11 years, due to higher input and labor costs. Consequently, there was an upward adjustment to output charges, indicating potential further inflationary pressure in the Indian economy. The report also highlights that manufacturers faced cost pressures, with prices charged to clients rising at the steepest rate in over a decade. Despite the marginal increase in backlogs, suppliers were able to meet delivery deadlines, and overall positive sentiment towards the year-ahead outlook for production remained broadly unchanged since June.