Mumbai, June 1 -- India's manufacturing sector recorded stronger growth in May, with final figures surpassing earlier flash estimates. The HSBC India Manufacturing PMI rose to 55.0, up from 54.7 in April and the flash reading of 54.3, marking the best improvement in three months.

Producers reported the fastest increases in new orders and output since February, led by intermediate and capital goods, while consumer goods makers saw slower growth. Demand strength, infrastructure projects, and new business gains were cited as drivers. Domestic demand was the main growth engine, though export orders rose solidly, with gains from Asia, Europe, Kenya, Nigeria, and the Middle East.

Purchasing prices climbed at the second-fastest pace since Apri...