India’s manufacturing growth slows, but HSBC PMI stays in expansion territory

India’s manufacturing sector saw its slowest pace of activity expansion in nearly five years in July, according to HSBC India Manufacturing Purchasing Managers' Index (PMI) data released on Monday.However, the manufacturing activity remained in expansion territory with the seasonally adjusted HSBC India Manufacturing PMI declining to 53.5 in July from 54.2 in June, its lowest reading since August 2021. The index stayed above the 50 threshold that distinguishes expansion from contraction, signalling that manufacturing conditions continued to improve.Decoding the numbersThe survey indicated that resilient demand continued to support the sector, although the pace of growth in new orders, input purchases and hiring moderated during the month, according to an ANI report."Manufacturers in India continued to benefit from demand resilience, with a sustained rise in new orders underpinning a further expansion in output during July.