India's June factory growth slips to second-weakest since mid-2022 as demand softens, PMI shows

India's manufacturing sector expanded at its second-slowest ​pace in four years ​in June as cooling demand for goods dragged ​on output and hiring but easing cost pressures provided some relief, a survey showed.

* The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled ‌by S&P ⁠Global, ⁠fell to 54.2 in June from May's 55.0 - slightly lower than ​a preliminary estimate of 54.5. Only March's reading was weaker going back ​to mid-2022.

* Despite falling to the second-lowest since mid-2022, the June's number was in line with the long-run ​series average. A PMI reading above 50.0 ⁠signals growth.


* ‌New orders - a key measure of ​demand - rose ​at their second-weakest rate since June 2022 after ⁠hitting a three-month high in May. Export orders ​were notably softer as international sales grew at ​the weakest pace in 39 months with firms citing subdued demand from European clients.

* Output also expanded at the second-slowest rate since mid-2022 as capital goods dragged.

* As demand lost momentum firms were more reluctant to ‌raise prices. Output charges rose at their slowest rate in three months and 93% of companies ​left fees ​unchanged from May. ⁠Input cost inflation eased to a four-month low though firms continued to flag higher prices for chemicals, metals, petroleum products and plastics.

* ​Hiring reflected the softer demand environment. Employment grew at its weakest pace this year and 97% of firms kept headcount unchanged citing adequate capacity.

* Concerns over demand and market conditions dampened business confidence to a five-month low.