Manufacturing PMI Rises to 14-Month High of 58.4 in June, Signals Robust Factory Momentum

New Delhi, July 1, 2025 – India’s manufacturing sector showcased strong resilience in June, with the HSBC India Manufacturing Purchasing Managers’ Index (PMI) climbing to a 14-month high of 58.4, up from 57.6 in May, indicating robust factory activity despite persistent global trade headwinds.

Quarterly Outlook Strengthens

The average PMI for the April–June quarter stood at 58.1, notably higher than 57.4 recorded in the previous quarter (January–March). This uptick signals a sustained expansion in manufacturing activity, driven by firm domestic demand and stable production pipelines.

PMI Trend Chart (July 2024–June 2025)

As per the PMI chart embedded on page 2, monthly readings remained consistently above the 56-mark, reflecting broad-based expansion:

• Notable monthly PMI levels included: 58.2 in April, 57.6 in May, and now 58.4 in June.
• March and February saw mild dips to 56.3 and 56.4 respectively, but the recovery since April has been sustained.

Industrial Output a Mixed Bag

While PMI data is encouraging, industrial production metrics painted a contrasting picture. The Index of Industrial Production (IIP) dropped to a nine-month low of 1.2% in May, mainly due to weather-related disruptions impacting electricity generation and mining activities.

• Capital goods and construction-related industries maintained growth.
• However, consumer durables and non-durables saw contraction, pointing to stress in household demand.

Macroeconomic Implications

Given these mixed signals, economists anticipate moderated GDP growth in Q1 FY26, relative to the strong 7.4% growth posted in Q4 FY25. The manufacturing PMI, however, is expected to remain a bright spot for India’s economy, especially in the face of rising U.S. tariffs and trade frictions.

About PMI

The Purchasing Managers’ Index (PMI) is a forward-looking indicator derived from monthly surveys of private sector companies. A reading above 50 indicates expansion, while below 50 signals contraction. India’s current reading of 58.4 places it firmly in growth territory.

About HSBC India Manufacturing PMI

The index, compiled by S&P Global, reflects the prevailing economic conditions in India’s manufacturing sector. It is widely tracked by investors, policymakers, and analysts to assess short-term economic momentum.

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