According to a survey, India's manufacturing sector showed positive growth in the month of May. HSBC India Manufacturing Purchasing Managers Index scored 55 in May, which reflects measures of employment, stock purchases, new orders, and supplier delivery times.
If the score is above 50, it shows expansion, and there is an increase in expansion of infrastructure projects and new business gains that have shown positive growth.
Chief India Economist at HSBC, Pranjul Bhandari said that purchasing activity and stocks of finished goods increased at a faster pace. Above the historical trend, there is growth in buying levels, and greater production needs were induced, which has created employment in India's manufacturing industry. According to data, new export orders increased, and input cost inflation eased in May. Businesses are confident, and cost pressure may reduce next year. Strong order pipelines also contributed to positive growth. HSBC India PMI is compiled by S&P Global and receives responses from purchasing managers in a panel of 400 manufacturers.
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