New Delhi, July 2 -- India's manufacturing activity expanded at its slowest pace in three months in June as demand and new orders moderated, according to the HSBC India Manufacturing Purchasing Managers' Index (PMI) released by S&P Global on Wednesday. The manufacturing PMI eased to 54.2 in June from the flash estimate of 54.5. It was the lowest reading since March, when the index stood at 53.9, the first full month after the West Asia conflict began. Excluding March, the June reading was the lowest since June 2022, when manufacturing PMI was 53.9. A PMI reading above 50 indicates expansion over the previous month, a level manufacturing PMI has maintained every month after June 2021. With the exception of March, June saw the weakest rate of growth in both output and new orders in four years. "The moderation suggests demand has cooled slightly after the earlier surge linked to the Middle East conflict," Pranjul Bhandari, Chief India Economist at HSBC, said in a note. The slowdown was concentrated almost entirely in capital goods, where growth fell sharply. This contrasted with stronger momentum among consumer and intermediate goods producers. Export demand continued to rise in June, but only marginally. The pace of growth slipped to its weakest in 39 months, with firms reporting softer sales to some European markets. As demand growth slowed, selling prices rose at the slowest pace in three months. Input inflation also eased amid easing geopolitical disruptions, with purchase prices rising at the slowest pace since February. Firms still reported higher costs for chemicals, electronics, gas, metals, petroleum products, plastics, rubber and wood.....