India Manufacturing Growth Eases In May

(RTTNews) - India's manufacturing activity continued to expand strongly in May, though at the weakest pace in three months amid slower rises in new orders and output, data compiled by S&P Global showed on Monday.

The HSBC final manufacturing Purchasing Managers' Index dropped to 57.6 in May from 58.2 in April. The flash reading was 58.5. Nonetheless, a score above 50.0 indicates expansion.

Both output and new orders rose at the slowest pace in three months, linked to cost pressures, fierce competition, and the India-Pakistan conflict. The overall sales growth was driven by healthy domestic and international demand, alongside successful marketing initiatives.

A positive demand environment encouraged firms to increase their purchasing activity and workforce numbers in May, with the rate of job creation climbing to a new series record.

On the price front, input price inflation accelerated to the highest since November 2024, led by higher costs for aluminum, cement, iron, leather, and rubber.   As a result, selling price inflation remained marked in May.

Looking ahead, Indian goods producers remained strongly confident of a rise in output over the next 12 months on the back of fruitful advertising and new customer inquiries.