India's manufacturing activity hit a 16-month high, with the seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) rising to 59.1 in July from 58.4 in June, according to data released by S&P on Friday.
The manufacturing actity was propelled by faster increases in new orders, output and stocks of purchases, the report said.
However, the job creation level receded to the weakest since November 2024, while business confidence retreated to its lowest level in three years.
In July, there was a sharp rise in the new orders placed with Indian goods producers as ovverall sales rose at the fastest pace in close to five years.
As a result, production growth also strengthened to a 15-month high in July.
While new export orders increased to a lesser extent than in June, the expansion was still among the best in over 14 years.
"At the same time, however, business confidence fell to its lowest level in three years due to concerns over competition and inflation. Indeed, input and output prices in India's manufacturing sector both remained elevated during July," said Pranjul Bhandari, Chief India Economist at HSBC.
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