June 2022: Manufacturing PMI slows

Growth in the country’s manufacturing sector slowed to a nine-month low in June, dragged down by stubborn price pressures, while business confidence sentiment slipped to a 27-month low, a survey showed on Friday.

Posting 53.9 in June, the S&P Global India Manufacturing Purchasing Managers’ Index signalled a 12th consecutive monthly improvement in the health of the sector. However, falling from 54.6 in May, the latest reading showed the weakest pace of growth since last September.

The 50-point mark separates expansion from contraction. Softer increases in production, factory orders, stocks of purchases and employment — all dragged down the PMI in June, alongside an improvement in supplier performance, which is inverted before entering the calculation, according to the survey.

Factory orders and production rose for the 12th straight month, but in both cases the rates of expansion eased to nine-month lows.

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