# India factory growth slows to near 5-year low in July 2026-08-16T14:51:54+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet India's manufacturing activity expanded at its slowest pace in nearly five years in July, with the HSBC India Manufacturing PMI falling to 53.5 from 54.2 in June, according to a survey by S&P Global. The reading, below the long-run average of 54.2, was the lowest since August 2021. New orders grew at their second-weakest rate in over four years, curbed by challenging market conditions and reduced client interest, Livemint reports. Despite the overall slowdown, new export orders rose at a faster pace, with gains from Canada, Egypt, Indonesia, and several other countries. Operating expenses increased, especially for transportation, but the overall rate of cost inflation eased to a five-month low. HSBC chief India economist Pranjul Bhandari said renewed tensions in West Asia have raised doubts about supply chain improvements, prompting manufacturers to rebuild inventories of inputs and finished goods. Employment growth weakened for the third straight month, posting the slowest rate in the current 29-month period of uninterrupted growth. Consumer goods were a particular area of weakness, while intermediate and capital goods makers fared better. Business sentiment strengthened from June's recent low, with firms expecting demand and infrastructure projects to improve. ## Coverage - livemint.com This story was synthesised by AI from the source linked above. Tags: HSBC, Pranjul Bhandari, S&P Global Canonical: https://indianopinion.org/india-factory-growth-slows-to-near-5-year-low-in-july/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/india-factory-growth-slows-to-near-5-year-low-in-july/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes. How this brief was made: an AI model read the report linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/