Business

India’s May Manufacturing PMI Hits Highest Level Since October 2020

May’s S&P Global India Manufacturing Purchasing Managers Index (PMI) shows factory orders surge at pace not seen since January 2021, slowing cost accumulation prompts producers to invest at unprecedented pace It rose to 58.7 in May, the highest level in 31 months, following the expansion of the

A reading of 50 on the index, which stood at 57.2 in April, indicates no change in activity levels. The latest reading reflects a substantial improvement in operating conditions with order books growing for the 23rd consecutive month, bolstered further by export deals clocking the swiftest rise in six months.

While the overall improvement in the health of the sector was the strongest since October 2020, output levels were the highest in 28 months and the pressure on capacities compelled firms to rev up fresh hiring to a six-month high.

While input costs “remained historically mild”, S&P Global said its survey of about 400 firms that forms the basis of the index, showed that producers raised selling prices at “a solid and quicker rate in May” that was the highest in a year. “According to [survey] panellists, sustained increases in input costs and a supportive demand environment led them to lift their charges,” the firm said.

 

Overall business confidence levels about growth prospects continued to improve after hitting an eight-month low in March, to hit a five-month high in May, with firms ascribing their upbeat mood to publicity and demand resilience.

Pollyanna De Lima, economics associate director at S&P Global Market Intelligence said the soaring sales captured in the PMI showcased robust demand for Indian goods at home and overseas, which also generated more employment opportunities in May. Ms. De Lima, however, added a word of caution about purchasing power depleting due to inflation.

“Improvements in supply chains and generally subdued global input demand helped keep input price inflation under control in May, but increased demand and previously absorbed cost burdens have led to a significant increase in selling prices. “There has been an upward revision. Demand-driven inflation, while not inherently negative, can erode purchasing power, create challenges for the economy and open the door for further rate hikes,” he stressed.

A record increase in wholesale inventories shows that companies are poised to take control of their supply chains. This should allow companies to mitigate potential disruptions, maintain a steady flow of production, and demonstrate resilience in the face of challenges, de Lima said.

 

 

Bharat Express English

Recent Posts

Cold Showers Vs Warm Showers: What’s Best To Start Your Day?

Choosing between cold and warm showers can impact your energy, health, and mood. Here’s how…

12 mins ago

Manoj Tiwari Joins Jagannath Rath Yatra In Puri; Celebrates With Devotees

BJP MP Manoj Tiwari participated in the first day of the Jagannath Rath Yatra in…

58 mins ago

HM Amit Shah To Launch Development & Education Projects Across Gujarat

Amit Shah is visiting Gujarat to inaugurate key education, cooperative, and rural development projects across…

1 hour ago

Parliamentary Committee To Visit Pahalgam Terror Site; Hold Key Meetings In Jammu & Srinagar

Following the recent terror attack in Pahalgam’s Baisaran Valley, a Parliamentary Committee is set to…

2 hours ago

PM Modi To Inaugurate Centenary Celebrations Of Acharya Shri Vidyanand Ji Maharaj

Prime Minister Narendra Modi will inaugurate the 100th birth anniversary commemoration of Acharya Shri Vidyanand…

3 hours ago

No Central Water Tax On Farmers; PIB Debunks Fake Social Media Claims

The Ministry of Jal Shakti has refuted viral social media claims suggesting that the Centre…

3 hours ago