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EconomyThe Hindu2 July 2026
Manufacturing PMI slows to 54.2 in June 2026, second-lowest in four years
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📌 Summary:
- HSBC India Manufacturing PMI slowed to 54.2 in June 2026, the second-lowest reading in four years
- Driven by a broad-based slowdown, including weaker new orders and output
- The only lower reading in the past four years was in March 2026, the first month of the West Asia conflict
- A PMI reading above 50 signals expansion; below 50 signals contraction — so activity is still expanding but decelerating
🎯 UPSC Relevance: GS3 (Indian Economy – Industrial Policy & Growth/Manufacturing) — high-frequency indicators, impact of geopolitical conflict on manufacturing demand.
📝 Prelims Facts:
- PMI is a survey-based leading indicator compiled by S&P Global for HSBC
- PMI > 50 = expansion, < 50 = contraction; it tracks new orders, output, employment, deliveries, stocks
- Distinct from IIP (official, government) which is a lagged production index
🔑 Key Term: Purchasing Managers Index (PMI) — a diffusion index based on monthly surveys of purchasing managers, used as an early gauge of economic activity.
PMImanufacturingeconomic indicatorsHSBC
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