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The Hindu
02-06-2025
- 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.
The Hindu
02-05-2025
- Business
- The Hindu
India's manufacturing sector growth hits 10-month high in April: PMI
The growth momentum in the Indian manufacturing sector improved in April, with output increasing at the fastest pace since June 2024, on the back of another strong expansion in order books, a monthly survey said on Friday (May 2, 2025). The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) rose from 58.1 in March to 58.2 in April, indicating the strongest improvement in the health of the sector for ten months. In PMI parlance, a print above 50 means expansion, while a score below 50 denotes contraction. A key factor contributing to the latest improvement in output growth was a sharp rise in new business. The manufacturing sector's rate of expansion was supported by better domestic and international demand. According to the survey, the total sales were supported by a sharp rise in international orders. New business from abroad grew to the greatest degree in over 14 years at the start of the 2025-26 fiscal year and this demand was led by Africa, Asia, Europe, the Middle East, and the Americas, the survey participants said. "The notable increase in new export orders in April may indicate a potential shift in production to India, as businesses adapt to the evolving trade landscape and US tariff announcements," Pranjul Bhandari, Chief India Economist at HSBC, said. This positive trend was accompanied by notable rises in employment and purchasing activity. "Manufacturers continued to enhance their staffing levels in April to meet growing output requirements. Exactly 9% of survey participants took on extra workers, with a combination of permanent and temporary contracts reportedly being offered," the survey said. Purchasing activity rose in tandem with new business growth, and the latest sharp expansion in input buying was also partly attributed to stock-building initiatives. "Manufacturing output growth strengthened to a ten-month high on robust orders. Input prices increased slightly faster, but the impact on margins could be more than offset by the much-faster rise in output prices, of which the index jumped to the highest level since October 2013," Bhandari added. On the prices front, robust demand for Indian goods boosted firms' pricing power, with selling charges hiked to the greatest degree since October 2013. This was despite a modest uptick in input costs. Strong optimism regarding output prospects over the coming year was evident in the April data, driven by expectations of demand strength. Marketing efforts, efficiency gains, and new client enquiries also underpinned positive forecasts. 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.
News18
02-05-2025
- Business
- News18
India's Manufacturing Sector Growth Hits 10-Month High In April: PMI
The seasonally adjusted HSBC India Manufacturing PMI rises from 58.1 in March to 58.2 in April, indicating the strongest improvement in the health of the sector for 10 months. The growth momentum in the Indian manufacturing sector improved in April, with output increasing at the fastest pace since June 2024, on the back of another strong expansion in order books, a monthly survey said on Friday. The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) rose from 58.1 in March to 58.2 in April, indicating the strongest improvement in the health of the sector for 10 months. In PMI parlance, a print above 50 means expansion, while a score below 50 denotes contraction. A key factor contributing to the latest improvement in output growth was a sharp rise in new business. The manufacturing sector's rate of expansion was supported by better domestic and international demand. According to the survey, the total sales were supported by a sharp rise in international orders. New business from abroad grew to the greatest degree in over 14 years at the start of the 2025-26 fiscal year and this demand was led by Africa, Asia, Europe, the Middle East, and the Americas, the survey participants said. 'The notable increase in new export orders in April may indicate a potential shift in production to India, as businesses adapt to the evolving trade landscape and US tariff announcements," Pranjul Bhandari, Chief India Economist at HSBC, said. This positive trend was accompanied by notable rises in employment and purchasing activity. 'Manufacturers continued to enhance their staffing levels in April to meet growing output requirements. Exactly 9 per cent of survey participants took on extra workers, with a combination of permanent and temporary contracts reportedly being offered," the survey said. Purchasing activity rose in tandem with new business growth, and the latest sharp expansion in input buying was also partly attributed to stock-building initiatives. 'Manufacturing output growth strengthened to a ten-month high on robust orders. Input prices increased slightly faster, but the impact on margins could be more than offset by the much-faster rise in output prices, of which the index jumped to the highest level since October 2013," Bhandari added. On the prices front, robust demand for Indian goods boosted firms' pricing power, with selling charges hiked to the greatest degree since October 2013. This was despite a modest uptick in input costs. Strong optimism regarding output prospects over the coming year was evident in the April data, driven by expectations of demand strength. Marketing efforts, efficiency gains, and new client enquiries also underpinned positive forecasts. 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. (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates—only on News18. Also Download the News18 App to stay updated! First Published: May 02, 2025, 13:32 IST News business » economy India's Manufacturing Sector Growth Hits 10-Month High In April: PMI
NDTV
02-05-2025
- Business
- NDTV
India's Manufacturing Sector Growth Hits 10-Month High In April
New Delhi: The growth momentum in the Indian manufacturing sector improved in April, with output increasing at the fastest pace since June 2024, on the back of another strong expansion in order books, a monthly survey said on Friday. The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) rose from 58.1 in March to 58.2 in April, indicating the strongest improvement in the health of the sector for ten months. In PMI parlance, a print above 50 means expansion, while a score below 50 denotes contraction. A key factor contributing to the latest improvement in output growth was a sharp rise in new business. The manufacturing sector's rate of expansion was supported by better domestic and international demand. According to the survey, the total sales were supported by a sharp rise in international orders. New business from abroad grew to the greatest degree in over 14 years at the start of the 2025-26 fiscal year and this demand was led by Africa, Asia, Europe, the Middle East, and the Americas, the survey participants said. "The notable increase in new export orders in April may indicate a potential shift in production to India, as businesses adapt to the evolving trade landscape and US tariff announcements," Pranjul Bhandari, Chief India Economist at HSBC, said. This positive trend was accompanied by notable rises in employment and purchasing activity. "Manufacturers continued to enhance their staffing levels in April to meet growing output requirements. Exactly 9 per cent of survey participants took on extra workers, with a combination of permanent and temporary contracts reportedly being offered," the survey said. Purchasing activity rose in tandem with new business growth, and the latest sharp expansion in input buying was also partly attributed to stock-building initiatives. "Manufacturing output growth strengthened to a ten-month high on robust orders. Input prices increased slightly faster, but the impact on margins could be more than offset by the much-faster rise in output prices, of which the index jumped to the highest level since October 2013," Bhandari added. On the prices front, robust demand for Indian goods boosted firms' pricing power, with selling charges hiked to the greatest degree since October 2013. This was despite a modest uptick in input costs. Strong optimism regarding output prospects over the coming year was evident in the April data, driven by expectations of demand strength. Marketing efforts, efficiency gains, and new client enquiries also underpinned positive forecasts. 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.
