manufacturing sector growth hits 3-month high in May
Mumbai, June 2 -- Growth in activity across India's manufacturing sector in May came in stronger than what was suggested by Flash PMI numbers released earlier, final numbers for the HSBC India Manufacturing PMI released by S&P Global on Monday showed, indicating continued stockpiling amid the protracted conflict in West Asia.
The seasonally adjusted manufacturing PMI, a gauge of overall conditions derived from measures of new orders, output, employment, supplier delivery times and stocks of purchases, rose to 55 in May-higher than both April's final reading of 54.7 and the May flash estimate of 54.3. A reading above 50 indicates expansion from the previous month. The final PMI print pointed to the strongest improvement in manufacturing sector conditions in 3 months.
The data showed that manufacturers stepped up purchases, new orders and output at a faster pace than in April, with stockpiling gaining strength as a result. "India's final manufacturing PMI points to another month of possible precautionary stockpiling as the Middle East conflict remains unresolved. Output growth accelerated, while purchasing activity and stocks of finished goods rose at a faster pace," said Pranjul Bhandari, Chief India Economist at HSBC.
Manufacturers reported the fastest growth in new orders and output since February. The improvement was driven by stronger gains in the intermediate and capital goods segments, even as consumer goods makers saw growth slow. Domestic demand provided the main boost, while new export orders rose at a softer but still solid pace.Firms reported higher international sales to markets in Asia, Europe, Kenya, Nigeria and West Asia. West Asia war continued to keep cost pressures in May, even though they eased marginally from April, with manufacturers reporting higher spending on energy, fuel, etc....
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