Latest news with #HSBCIndiaManufacturingPurchasingManagers'Index
Business Upturn
5 days ago
- Business
- Business Upturn
India's manufacturing PMI slips to 3-month low in May, employment hits record high
India's manufacturing sector remained in expansion mode in May 2025, although momentum softened compared to April, according to the HSBC India Manufacturing Purchasing Managers' Index (PMI) released by S&P Global. The PMI dipped to 57.6 in May from 58.2 in April — a three-month low — signaling a slower pace of growth in output and new orders. Despite the decline, the reading remained well above the neutral 50-mark and its long-run average of 54.1. According to the HSBC report, while domestic and international demand continued to support business activity, cost inflation, intense market competition, and concerns surrounding the India-Pakistan conflict acted as drags on growth. Manufacturers reported notable increases in selling prices, driven by higher input costs — the steepest seen in nearly a year. One standout in the data was employment. May witnessed the highest rate of job creation since the survey began, with permanent roles rising significantly. Firms also ramped up their input purchases to meet future demand, even as inventory of finished goods fell for the sixth consecutive month. New export orders rose strongly, with firms citing better demand from the US, Europe, Asia, and the Middle East. Despite the challenges, sentiment for future output remained robust, driven by marketing efforts and fresh customer enquiries. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Economic indicators like PMI are subject to revisions and contextual interpretation. Please consult official sources or financial experts before making business decisions. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Times of Oman
02-05-2025
- Business
- Times of Oman
Indian manufacturing booms in April as exports see biggest leap in 14 years
New Delhi: India's manufacturing sector gained fresh momentum in April, driven by a sharp increase in output and robust international demand, according to the latest HSBC India Manufacturing Purchasing Managers' Index. The seasonally adjusted PMI edged up marginally to 58.2 in April from 58.1 in March, marking the strongest improvement in the sector's health in ten months. Pranjul Bhandari, Chief India Economist at HSBC, 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." Bhandari added, "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." The upbeat figures were underpinned by a surge in new orders, both domestic and international. Export orders saw their second-fastest increase in 14 years--surpassed only once since March 2011--highlighting a significant boost in global demand for Indian-made goods. Companies reported rising interest from key regions, including Africa, Asia, Europe, the Middle East, and the Americas. Manufacturing output expanded at its quickest rate since June 2024, with widespread growth across subsectors. Consumer goods manufacturers led the upturn. Rising demand also prompted a notable increase in employment, with 9 per cent of surveyed firms hiring additional staff, both on permanent and temporary contracts. HSBC PMI mentioned, "A key factor contributing to the latest improvement in output growth was a sharp rise in new business. Little-changed from March, the rate of expansion was the second-strongest for nine months." Despite higher input costs--driven by expenses in labour, transportation, steel, and other materials--manufacturers were able to pass these on to customers. Selling prices rose at the fastest pace since October 2013, even as input cost inflation remained moderate in comparison. The influx of new orders also led to increased purchasing activity and stockpiling, with input inventories growing at the fastest pace since August 2024. However, post-production inventories declined at the sharpest rate in nearly three and a half years, indicating strong demand fulfilment. Backlogs of work grew for the third consecutive month, with the rate of accumulation hitting a 15-month high. Meanwhile, supplier delivery times continued to improve, albeit slightly, reflecting reduced pressure on supply chains. Looking ahead, manufacturers expressed strong optimism about the year ahead, buoyed by expectations of continued demand growth, enhanced marketing efforts, and new client acquisitions. The PMI data signals a robust start to the 2025/26 fiscal year for Indian manufacturing, reinforcing its role as a key driver of economic momentum.
Time of India
02-05-2025
- Business
- Time of India
India's April manufacturing growth reaches 10-month high as exports surge, PMI shows
India's manufacturing sector growth accelerated in April to its strongest pace in 10 months, powered by robust export demand and increased output despite companies raising selling prices at the fastest rate in over 11 years, a survey showed on Friday. The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, inched up to 58.2 in April from 58.1 in March, a tad lower than a preliminary estimate of 58.4. PMI readings above 50.0 indicate growth in activity, while those below that level point to a contraction. "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 U.S. tariff announcements," said Pranjul Bhandari, chief India economist at HSBC. Manufacturing output expanded at the sharpest rate since June 2024, with consumer goods makers registering the fastest increase among the surveyed sectors. New orders remained buoyant, with growth holding close to March's eight-month high. Export orders grew at the second-fastest pace in over 14 years, behind only January's surge. Survey respondents reported increased sales to clients across the world. The hiring pace also accelerated from March, with both permanent and temporary contracts being offered. Meanwhile, healthy demand allowed manufacturers to hike their selling prices at the steepest pace since October 2013, passing on rising costs to customers. This aggressive pricing strategy occurred even as input cost inflation remained moderate. "Input prices increased slightly faster, but the impact on margins could be more than offset by the much-faster rise in output prices," Bhandari added. Business confidence remained historically high, with over 30 per cent of manufacturers forecasting higher output in the year ahead.
Mint
02-05-2025
- Business
- Mint
PMI data: India's manufacturing growth hits 10-month high in April
New Delhi: India's manufacturing sector expanded at its fastest pace in 10 months in April, driven by strong demand and a sharp rise in output, a private survey released on Friday said. The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 58.2 in April from 58.1 in March and 56.3 in February. The index was at 57.7 in January and 56.4 in December. A reading above 50 indicates expansion, and below 50 a contraction. "Growth momentum in the Indian manufacturing industry improved in April, with output increasing at the fastest pace since June 2024 on the back of another strong expansion in order books," the survey said. "Total sales were supported by the second fastest upturn in international orders since March 2011. This positive trend was accompanied by notable rises in employment and purchasing activity," it added. Despite rising only fractionally from 58.1 in March to 58.2 in April, the seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index showed the biggest improvement in the sector's health in 10 months. "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," said Pranjul Bhandari, chief India economist at HSBC. "Manufacturing output growth strengthened to a 10-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," she added. India's economic growth rebounded in the December quarter after a slowdown in September but remained below the previous fiscal year's pace. GDP grew 6.2% in Q3 FY25—the slowest since Q4 FY23, except for Q2 FY25's revised estimate of 5.6%. The National Statistics Office (NSO) has projected 6.5% GDP growth for FY25. A back-of-the-envelope calculation suggests growth will have to come in at 7.6% in the final quarter of the year to align with the NSO's second advanced estimate. However, the International Monetary Fund (IMF) has cut its India growth forecast for the fiscal year to 6.2% and slashed its global trade outlook as the US tariff war raises concerns worldwide. In October 2024 the IMF had predicted 6.5% growth for India in FY25, which it reiterated in January. The latest revision comes after similar cuts by the Asian Development Bank (ADB), Moody's Analytics and S&P Global. Manufacturing output rose 3.5% in Q3 FY25, up from 2.1% in the prior quarter but significantly below the 14% and 7.5% recorded in Q4 FY24 and Q1 FY25, respectively. This sluggish growth weighed on overall GDP expansion. Meanwhile, the latest manufacturing PMI survey reported that a sharp rise in new businesses—driven by stronger domestic and international demand—was the main driver of output growth, with the expansion rate, little changed from March, marking the second-strongest in nine months. "Strong optimism regarding output prospects over the coming year was evident in the April data, driven by expectations of demand strength," the report said. "Marketing efforts, efficiency gains and new client enquiries also underpinned positive forecasts," it added. First Published: 2 May 2025, 12:47 PM IST
Economic Times
02-05-2025
- Business
- Economic Times
India's April manufacturing growth reaches 10-month high as exports surge, PMI shows
India's manufacturing sector growth accelerated in April to its strongest pace in 10 months, powered by robust export demand and increased output despite companies raising selling prices at the fastest rate in over 11 years, a survey showed on Friday. The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, inched up to 58.2 in April from 58.1 in March, a tad lower than a preliminary estimate of 58.4. PMI readings above 50.0 indicate growth in activity, while those below that level point to a contraction. "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 U.S. tariff announcements," said Pranjul Bhandari, chief India economist at HSBC. Manufacturing output expanded at the sharpest rate since June 2024, with consumer goods makers registering the fastest increase among the surveyed sectors. New orders remained buoyant, with growth holding close to March's eight-month high. Export orders grew at the second-fastest pace in over 14 years, behind only January's surge. Survey respondents reported increased sales to clients across the world. The hiring pace also accelerated from March, with both permanent and temporary contracts being offered. Meanwhile, healthy demand allowed manufacturers to hike their selling prices at the steepest pace since October 2013, passing on rising costs to customers. This aggressive pricing strategy occurred even as input cost inflation remained moderate. "Input prices increased slightly faster, but the impact on margins could be more than offset by the much-faster rise in output prices," Bhandari added. Business confidence remained historically high, with over 30% of manufacturers forecasting higher output in the year ahead.
