New Delhi: Production strong activity in May and extended up to 31 months High Improvement due to strong demand supply Strong growth in chain and new orders, a survey showed on Thursday.
The S&P Global India Manufacturing Purchasing Managers’ Index (PMI) rose from 57.2 in April to 58.7 in May, indicating the strongest improvement in the health of the sector since October 2020. The 50-point mark separates expansion from contraction. The survey is compiled from responses to a questionnaire sent to purchasing managers at a panel of approximately 400 manufacturers.
The manufacturing sector has improved since the lifting of restrictions imposed to contain the spread of the coronavirus. Latest data shows that the sector grew by 4.5% in the fourth quarter of 2022-23 after a decline of 1.4% in the previous quarter.
The survey results showed that the increase in sales has led to a strong increase in production, employment and purchase volume. With supply chain conditions improving further, companies have registered record accumulation in input inventories.
Of the five sub-components of the PMI, the share of purchases showed remarkable enthusiasm, rising at an unprecedented pace in May.
“PMI’s spotlight on rising sales reflects strong demand for India-made products both domestically and internationally. While a boom in domestic orders strengthens the foundation of the economy, an increase in external trade fosters international partnerships and boosts India’s position in the global market. Combined, they also created more jobs in May,” said Pollyanna De Lima, associate director of economics at S&P Global Market Intelligence.
The S&P Global India Manufacturing Purchasing Managers’ Index (PMI) rose from 57.2 in April to 58.7 in May, indicating the strongest improvement in the health of the sector since October 2020. The 50-point mark separates expansion from contraction. The survey is compiled from responses to a questionnaire sent to purchasing managers at a panel of approximately 400 manufacturers.
The manufacturing sector has improved since the lifting of restrictions imposed to contain the spread of the coronavirus. Latest data shows that the sector grew by 4.5% in the fourth quarter of 2022-23 after a decline of 1.4% in the previous quarter.
The survey results showed that the increase in sales has led to a strong increase in production, employment and purchase volume. With supply chain conditions improving further, companies have registered record accumulation in input inventories.
Of the five sub-components of the PMI, the share of purchases showed remarkable enthusiasm, rising at an unprecedented pace in May.
“PMI’s spotlight on rising sales reflects strong demand for India-made products both domestically and internationally. While a boom in domestic orders strengthens the foundation of the economy, an increase in external trade fosters international partnerships and boosts India’s position in the global market. Combined, they also created more jobs in May,” said Pollyanna De Lima, associate director of economics at S&P Global Market Intelligence.