India's Manufacturing Surge: PMI Hits 14-Month High

India's manufacturing sector experienced a robust performance in the first quarter, as highlighted by the HSBC India Manufacturing Purchasing Managers' Index (PMI). The index climbed to 58.4 in June from 57.6 in May, marking a 14-month peak and exceeding the long-term average of 54.1.

A significant surge in international orders was a key feature, with export demand rising at the third-fastest pace since the survey's inception in 2005. The United States was frequently cited by companies as a primary demand driver, enhancing overall sales and production. Intermediate goods manufacturers led the expansion, while consumer and capital goods producers recorded slower growth.

The demand boom fueled a record rise in employment, as firms addressed increased backlogs by hiring more workers, mostly on a short-term basis. Input cost inflation eased to its lowest point since February, despite high raw material prices such as iron and steel. Selling prices, however, increased as firms transferred higher costs to consumers amid strong demand.

(With inputs from agencies.)