India PMI Manufacturero

The HSBC India Manufacturing PMI dropped to 57.5 in August 2024, compared to the flash estimate of 57.9 and market forecasts of 58. Indian manufacturers recorded softer increases in new orders and output during the month of August, albeit with rates of expansion remaining elevated by historical standards. Meanwhile, input price inflation eased to a five-month low in August, prompting manufacturers to increase their raw material purchases to build safety stocks. This led to one of the largest rises in input inventories recorded in 19-and-a-half years of data collection. Despite the slowdown in cost pressures, firms reportedly shared additional cost burdens with their clients amid demand resilience. The rate of output cost inflation was the second-fastest in close to 11 years. Lastly, business confidence fell to its lowest level since April 2023, as competitive pressures and inflation concerns weighed heavily on sentiment.