Manufacturing PMI: Inflation pressure is receding, so is growth

India's HSBC Manufacturing PMI fell to a three-month low of 54.2 in June from 55 in May, below the flash estimate of 54.5, as output and new orders posted their weakest growth in four years (excluding March). International demand for Indian goods was the weakest in 39 months, while WPI inflation accelerated sharply to 9.68% in May from 8.26% in April, led by fuel and power costs. Business optimism among manufacturers slipped to a five-month low, with IDFC First Bank warning of margin pressure and a slowdown in real manufacturing GVA growth in Q1FY27 due to the full impact of the West Asia crisis.