Latest news with #HSBCIndia
Hans India
a day ago
- Business
- Hans India
Manufacturing PMI stays in healthy zone
New Delhi: India's manufacturing sector continued its healthy performance in May, with the HSBC India Manufacturing Purchasing Managers' Index (PMI) recording a reading of 57.6, it said on Monday. While slightly lower than April's 58.2, the index remains well above the neutral 50 mark -- signifying sustained expansion in the sector, according to data compiled by S&P Global.'India's May manufacturing PMI signalled another month of robust growth in the sector,' said Pranjul Bhandari, Chief India Economist at HSBC. 'The acceleration in employment growth to a new peak is certainly a positive development. Input cost inflation is picking up, but manufacturers seem to be able to lessen the pressure on profit margins by raising output prices,' she growth was powered by solid domestic and overseas demand, as well as successful marketing efforts that boosted export orders to one of the highest levels seen in the last three years. Manufacturing companies also stepped up hiring in costs saw a moderate rise, influenced by items such as aluminium, cement, iron, leather, rubber, and sand, along with freight and response, manufacturers increased selling prices at a strong pace to maintain healthy margins, the report said. Despite these price adjustments, business confidence remains high. Manufacturers are optimistic about the year ahead, citing effective advertising, rising customer enquiries, and a supportive domestic market as key drivers of future growth.
Time of India
a day ago
- Business
- Time of India
Manufacturing activity at a 3-month low but still robust: Survey
NEW DELHI: Manufacturing activity in the country slowed to a three-month low in May due to softer growth in new orders and production, but it still remained robust, supported by orders from overseas, a survey showed on Monday. Tired of too many ads? go ad free now Falling from 58.2 in April to 57.6 in May, the HSBC India Manufacturing Purchasing Managers' Index (PMI) highlighted the weakest improvement in operating conditions since Feb. The headline figure was well above its long-run average of 54.1.
Business Recorder
a day ago
- Business
- Business Recorder
Indian manufacturing growth eases to 3-month low in May, PMI shows
BENGALURU: India's manufacturing growth slowed to a three-month low in May as demand softened amid price pressures and geopolitical tensions but job creation hit a record high, a survey showed on Monday. Solid manufacturing growth has helped India's economy outperform its major peers. Asia's third-largest economy grew 7.4% last quarter from a year earlier, the fastest expansion since early 2024 and much quicker than a Reuters poll median estimate of 6.7%. The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, fell to 57.6 in May from 58.2 in April, lower than a preliminary estimate of 58.3, but still well above the 50.0 level that separates growth from contraction. 'India's May manufacturing PMI signalled another month of robust growth in the sector, although the rate of expansion in output and new orders eased from the previous month,' said Pranjul Bhandari, chief India economist at HSBC. India's annual growth hits four-year low of 6.5pc The expansion in new orders - a key gauge of demand – eased to a three-month low but remained historically strong, supported by healthy domestic consumption and international sales. Output growth decelerated to its weakest pace since February, though manufacturers maintained positive sentiment about the year ahead. Job creation was one major bright spot, with manufacturers increasing hiring at the fastest pace in the survey's history, with permanent positions being created more frequently than temporary roles. 'The acceleration in employment growth to a new peak is certainly a positive development,' Bhandari said. Cost pressures intensified during May, with input price inflation climbing to a six-month high. Manufacturers passed these costs on to customers, with output price inflation among the highest in over 11 years. Growing price pressures could complicate monetary policy decisions for the Reserve Bank of India, which has already cut its key repo rate by a cumulative 50 basis points this year as overall inflation remains below the RBI's 4.0% target. The central bank is expected to cut interest rates on June 6 for a third consecutive meeting and once more in August, a Reuters poll showed last week.
The Hindu
2 days ago
- Business
- The Hindu
India's manufacturing sector growth falls to three-month low in May
India's manufacturing sector growth fell to a three-month low in May, restricted by inflationary pressures, softer demand and heightened geopolitical conditions, a monthly survey said on Monday (June 2, 2025). The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) fell from 58.2 in April to 57.6 in May, highlighting the weakest improvement in operating conditions since February. In PMI parlance, a print above 50 means expansion, while a score below 50 denotes contraction. May data indicated another robust improvement in business conditions across India's manufacturing industry, but rates of expansion receded to their weakest in three months, the survey said. Monitored companies linked growth to healthy domestic and international demand, alongside successful marketing initiatives. However, the upturn was curbed by cost pressures, fierce competition and the India-Pakistan conflict, according to panellists. 'India's May manufacturing PMI signalled another month of robust growth in the sector, although the rate of expansion in output and new orders eased from the previous month. The acceleration in employment growth to a new peak is certainly a positive development,' Pranjul Bhandari, Chief India Economist at HSBC, said. On the jobs front, firms hired additional staff in May, with the rate of job creation climbing to a new series record. Among the 12% of panellists that reported higher headcounts, the creation of permanent job roles featured more prominently than that of short-term positions. Moreover, sustained job creation enabled manufacturers to stay on top of their workloads in May, the survey said. On the price front, in addition to greater material costs, manufacturers also reported greater outlays on freight and labour. As a result of rising operating expenses and supported by strong demand, firms increased their selling prices in May. 'Input cost inflation is picking up, but manufacturers seem to be able to lessen the pressure on profit margins by raising output prices,' Ms. Bhandari said. Meanwhile, new export orders rose at one of the strongest rates recorded in three years. Panel members remarked on favourable demand from Asia, Europe, the Middle East and the U.S. On the business outlook, Indian manufacturers remained strongly confident of a rise in output over the course of the coming 12 months, the survey said. The HSBC India Manufacturing PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers. The panel is stratified by detailed sector and company workforce size, based on contributions to GDP.
Economic Times
2 days ago
- Business
- Economic Times
Indian manufacturing growth eases to 3-month low in May, PMI shows
India's manufacturing growth slowed to a three-month low in May as demand softened amid price pressures and geopolitical tensions but job creation hit a record high, a survey showed on Monday. Solid manufacturing growth has helped India's economy outperform its major peers. Asia's third-largest economy grew 7.4% last quarter from a year earlier, the fastest expansion since early 2024 and much quicker than a Reuters poll median estimate of 6.7%. The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, fell to 57.6 in May from 58.2 in April, lower than a preliminary estimate of 58.3, but still well above the 50.0 level that separates growth from contraction. "India's May manufacturing PMI signalled another month of robust growth in the sector, although the rate of expansion in output and new orders eased from the previous month," said Pranjul Bhandari, chief India economist at HSBC. The expansion in new orders - a key gauge of demand - eased to a three-month low but remained historically strong, supported by healthy domestic consumption and international sales. Output growth decelerated to its weakest pace since February, though manufacturers maintained positive sentiment about the year ahead. Job creation was one major bright spot, with manufacturers increasing hiring at the fastest pace in the survey's history, with permanent positions being created more frequently than temporary roles. "The acceleration in employment growth to a new peak is certainly a positive development," Bhandari said. Cost pressures intensified during May, with input price inflation climbing to a six-month high. Manufacturers passed these costs on to customers, with output price inflation among the highest in over 11 years. Growing price pressures could complicate monetary policy decisions for the Reserve Bank of India, which has already cut its key repo rate by a cumulative 50 basis points this year as overall inflation remains below the RBI's 4.0% target. The central bank is expected to cut interest rates on June 6 for a third consecutive meeting and once more in August, a Reuters poll showed last week.
