India's Manufacturing Sector Shines, Japan's Contracts

Strong Growth Continues for Indian Manufacturers

India's manufacturing sector continued to experience robust growth in July, according to the HSBC final India Manufacturing Purchasing Managers Index (PMI) compiled by SP Global. The PMI came in at 58.1 last month, indicating a solid expansion in activity.

Solid Demand Drives Growth

Strong demand from both domestic and international markets fueled the growth in manufacturing output. The PMI sub-index for new orders rose to 59.2 in July, indicating a strong increase in demand for manufactured goods.

Longest Expansionary Streak in 11 Years

The manufacturing PMI has remained above the 50-mark separating growth from contraction since July 2021, marking the longest expansionary streak in 11 years. This sustained growth underscores the resilience of India's manufacturing sector amid global economic challenges.

Japan's Factory Activity Contracts

In contrast to India, Japan's manufacturing activity contracted slightly in July. The au Jibun Bank Japan Manufacturing PMI fell to 48.9 in July, indicating a decline in output and new orders. Higher prices continued to weigh on firms in the sector.