India’s manufacturing PMI up in August ’24

India’s manufacturing sector grew in August 2024, with the HSBC India Manufacturing PMI at 57.5, slightly lower than July’s 58.1 but still well above the long-run average of 54.0, indicating improved operating conditions.

New business experienced a strong increase in the second quarter, but growth slowed to a seven-month low. Advertising, brand recognition, and high demand were key factors driving the rise, but competition hindered further expansion.

New export orders also increased, albeit at the weakest rate since the beginning of 2024. Approximately 10 per cent of firms reported an improvement in international sales, driven by stronger demand from markets in Asia, Africa, Europe, and the US.

Output continued to increase at a strong pace, but the rate of growth slowed to its lowest level since January. Some firms saw higher sales and technology investments boosting production, while others faced challenges from competition and changing consumer preferences.

Attribution: HSBC India Manufacturing PMI report

Subediting: M. S. Salama