Manufacturing PMI: India’s Manufacturing Activity Gains Momentum In May
India’s manufacturing activity gained momentum in May as business sentiment improved overall.
India's manufacturing activity gained momentum in May as business sentiment improved overall, leading to a rise in output and employment.
The Nikkei India Manufacturing Purchasing Managers’ Index rose to 52.7 for the month from 51.8 in April, according to a statement. This was the twenty-second consecutive month that the manufacturing PMI remained above the 50-point mark.
In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.
Consumer goods led the improvement in May, with rates of expansion in output, total sales, new export orders and employment surpassing those seen in the intermediate as well as capital goods categories, the statement said.
Overall manufacturing output increased at the quickest rate in three months with better sales, technology and new clients. “Strengthening demand and successful marketing reportedly underpinned sales growth in May.”
Pollyanna De Lima, principal economist at IHS Markit, said, “A revival in new order growth promoted a faster upturn in manufacturing production, as Indian firms sought to replenish inventories utilised in May to fulfill strengthening demand.”
India's producers were also confident of a rise in output this year, optimistic on expectations of pro-business policies and projects after the Bharatiya Janata Party's Narendra Modi was re-elected as Prime Minister. The upbeat mood with increase in new work has led to a rise in employment, according to IHS Markit. With this, employment has risen consecutively for the last 12 months.