Economy · 5 Aug 2026

Manufacturing PMI July 2026

With reference to India's HSBC Manufacturing PMI for July 2026, which one of the following statements is correct?

AThe PMI fell to 53.5 in July 2026, its lowest reading since August 2021, though a reading above 50 still denotes expansion

BThe PMI fell below 50 in July 2026, indicating the manufacturing sector contracted for the first time since 2021

CThe PMI is compiled jointly by the Reserve Bank of India and the Ministry of Statistics

DThe PMI rose to a five-year high in July 2026 on the back of strong domestic demand

This question is based on: Manufacturing growth falls to 5-year low in July: PMI

Take this in full test mode → Instructions for 5 Aug 2026

About this question

Why in news

India's Manufacturing PMI slipped to 53.5 in July 2026, a near five-year low, even as manufacturing employment growth hit a 29-month low.

Why for UPSC

This tests the basic but frequently confused mechanics of PMI interpretation - that a "low" reading above 50 is still expansionary - a distinction UPSC often exploits in economic-indicator questions.

Prelims summary

PMI above 50 denotes expansion, below 50 denotes contraction; India's July 2026 Manufacturing PMI of 53.5, though a 5-year low, remained in expansionary territory, compiled by S&P Global.

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