Mumbai, Aug. 3 -- India's manufacturing sector expanded at a slower pace in July, with the purchasing managers' index falling to 53.5 from 54.2 in June, recording the lowest reading since August 2021, according to data released Monday by HSBC and S&P Global. The July figure remained above the 50 threshold that separates growth from contraction but fell below the long-run series average of 54.2. New orders grew at the second-weakest rate in over four years. Companies cited advertising efforts and demand resilience as supporting factors, while increasingly challenging market conditions and reduced client interest for key items limited sales.

Export orders showed improvement, rising at a faster rate than the previous month. Manufacturers re...