New Delhi, Aug. 3 -- India's manufacturing activity expanded at its slowest pace in over five years in July as a sharp moderation in new orders curbed input purchasing, even as export demand strengthened and inflationary pressures moderated, a survey data indicated on Monday.

The HSBC India Manufacturing Purchasing Managers' Index (PMI) fell to 53.5 in July, down from 54.2 in June, and remained below the flash reading of 53.9, underscoring that renewed tensions in West Asia have raised fresh doubts among manufacturers. However, the reading remained above the 50-mark that separates expansion from contraction.

The index is a gauge of overall conditions derived from measures of new orders, output, employment, supplier delivery times, and s...