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India Gazette
3 days ago
- Business
- India Gazette
India's manufacturing PMI declined in May, weakest improvement in operating conditions since Feb: HSBC PMI
New Delhi [India], June 2 (ANI): India's manufacturing activity slowed slightly in May, with the HSBC India Manufacturing Purchasing Managers' Index (PMI) falling to 57.6 from 58.2 in April, according to the HSBC PMI data released by S&P Global on Monday. This marked the weakest improvement in operating conditions since February. However, the headline figure remained well above the neutral 50.0 mark, which separates expansion from contraction, and higher than the long-term average of 54.1. The data showed that while there was still a strong improvement in business conditions, the pace of growth in new orders and output slowed to a three-month low. HSBC report said 'Rates of increase in new orders and output retreated to three-month lows, they remained well above their respective long-run averages.' Despite this, both remained well above their long-run trends, supported by healthy domestic and international demand. Companies also credited successful marketing efforts for the continued rise in sales. However, some manufacturers said that growth was impacted by strong competition, rising costs, and the ongoing India-Pakistan conflict. New export orders rose at one of the fastest rates in three years. Firms reported strong demand from regions including Asia, Europe, the Middle East, and the US. This growth encouraged companies to increase input buying and expand their workforce. In fact, the rate of job creation in May reached a new series record, as more firms hired additional staff to meet demand. The data report also noted that Cost pressures intensified during the month. Companies reported higher prices for materials such as aluminium, cement, iron, leather, rubber, and sand. They also faced rising freight and labour costs. This led to an increase in selling prices, which rose at one of the sharpest rates in around 11-and-a-half years. The rate of charge inflation remained above its long-run average. Despite these cost pressures, supply chain conditions improved. Average delivery times shortened to the greatest extent in four months. As a result, companies increased their stocks of purchases, with the pace of accumulation being the second-fastest since August 2024. However, inventories of finished goods fell for the sixth consecutive month, although the rate of decline was the slowest since February. Looking ahead, Indian manufacturers remained confident about future growth. Many expect higher output in the next 12 months. HSBC said 'Among the main opportunities to growth, they remarked on advertising and new customer enquiries'. (ANI)
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Business Standard
3 days ago
- Business
- Business Standard
Cost pressures, Pak conflict dampens manufacturing activity in May: PMI
Curbed by cost pressures, fierce competition and the India-Pakistan conflict, India's manufacturing activity decelerated in May, growing at its slowest pace in three months, according to a private survey released on Monday. The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, fell to 57.6 in May from 58.2 in April. 'May data indicated another robust improvement in business conditions across India's manufacturing industry. Although rates of increase in new orders and output retreated to three-month lows, they remained well above their respective long-run averages,' the survey said. Respondents suggested that strong demand continued to support sales and production, though competition, inflation, and the India-Pakistan conflict had weighed on growth. Goods producers increased input purchases and hiring, with the latter seeing a record rise. Meanwhile, input cost inflation climbed to a six-month high, prompting one of the sharpest increases in selling prices in nearly 11-and-a-half years. 'New export orders rose at one of the strongest rates recorded in three years. Panel members cited favourable demand from Asia, Europe, the Middle East and the US,' the survey added. Pranjul Bhandari, chief India economist at HSBC, said India's May manufacturing PMI signalled another month of strong growth, even though the pace of expansion in output and new orders eased compared to April. 'The acceleration in employment growth to a new peak is certainly a positive development. Input cost inflation is picking up, but manufacturers appear able to ease pressure on margins by raising output prices,' she said. On the jobs front, firms hired additional staff in May, with the rate of job creation rising to a record high. Among the 12 per cent of respondents reporting higher headcounts, permanent hires were more common than temporary ones. 'Sustained job creation enabled manufacturers to stay on top of their workloads in May. Outstanding business volumes were unchanged, ending a six-month period of accumulation,' the survey noted.
Time of India
3 days ago
- Business
- Time of India
Indian manufacturing growth eases to 3-month low in May, PMI shows
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel 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 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 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 growth decelerated to its weakest pace since February, though manufacturers maintained positive sentiment about the year 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 pressures intensified during May, with input price inflation climbing to a six-month passed these costs on to customers, with output price inflation among the highest in over 11 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% 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.
Mint
19-05-2025
- Business
- Mint
India's manufacturing sector is gaining global traction, says S&P Global
New Delhi: India's manufacturing sector is emerging as an increasingly attractive destination for global investors, with the country making notable progress in enhancing its competitiveness and making its manufacturing sector more attractive to global investors, S&P Global said on Monday. It also highlighted in its latest research report, titled 'India Forward: Transformative Perspectives', that India is ramping up its push for alternative energy to build a cleaner, self-reliant transport future in which biofuels will play a central role. This push offers a triple win for the country through strengthening energy security, lowering greenhouse gas emissions, and enhancing rural incomes, the report said. India is well-positioned to capitalise on shifting global trade dynamics and cooperation trends, with its economy set to become the world's third-largest by FY31, S&P Global added. Over the past three decades, India has grown significantly in scale and international influence, the reported noted. Its core sectors—manufacturing, agriculture and services—have grown in step with demographic shifts and structural changes, and will see demand grow as the economy advances, it said. Meanwhile, an analysis of S&P Global Market Intelligence's Strategic Opportunity Index shows India has made notable gains in competitiveness, especially in attracting global investment to its manufacturing sector. "Energy will be a key thread that will enable the performance and viability of all sectors in India," the report said. "Cross-cutting themes will span security and reliability, in the larger framework of a more market-oriented and globally integrated economy," it added. The latest report from S&P Global comes after India's manufacturing sector expanded at its fastest pace in 10 months in April, driven by strong demand and a sharp rise in output. 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 an expansion, and below 50 a contraction. The survey said growth momentum in the Indian manufacturing industry improved in April, with output increasing at the fastest pace since June 2024 on the back of a strong expansion in order books. "An analysis of S&P Global Market Intelligence's SOI over time indicates that India has made notable progress in enhancing its competitiveness and making its manufacturing sector more attractive to investors," the report said. However, India continues to lag in the resource availability momentum score, registering 69.4 out of 100. This score measures the cost and availability of two key inputs: labour and finance. "This is primarily due to the relatively low score of the labour component (50 out of 100), as the availability of labour with the required skills for value-added manufacturing remains a significant challenge that hinders India's competitiveness," the report said. "The targeted skill development initiatives (e.g., for semiconductors and solar photovoltaic cell manufacturing) underway may take some time to translate into an improvement in the score," it added. The S&P Global report said the Oilfields (Regulation and Development) Amendment Bill, 2024 and other anticipated regulatory changes come at an opportune time for India amid increasing global uncertainty, with the government and national oil companies looking to ensure growth while improving revenue prospects. Meanwhile, with exploration activity dwindling around the world, many producers are looking at India, which presents an investment opportunity as a major growth market. "The global narrative in energy markets is shifting closer to what India has always pursued – an 'all-of-the-above' approach. The government and its state-owned national oil companies alike are looking to plug mismatches in supply and revenue," the report said. "S&P Global Commodity Insights notes that India has a consistent decline in liquids production, while its gas markets are expected to grow significantly," it added. The report pointed out that the diversifying India's energy regulatory environment will also be important, especially as it seeks to draw investors in areas such as renewable and nuclear energy. "Looking forward, how India prepares for potential supply-chain disruption will be an indicator to watch. The largely benign global oil price environment rewards India's import strategy, but energy security now goes beyond physical supply security," it added.
Fibre2Fashion
05-05-2025
- Business
- Fibre2Fashion
India's manufacturing PMI hits 10-month high in April on strong orders
Despite rising only fractionally from 58.1 in March to 58.2 in April, the seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) showed the strongest improvement in the health of the sector for 10 months. India's manufacturing industry saw improved growth momentum in April, with output rising at its fastest rate since June 2024, driven by strong order book expansion. Total sales were bolstered by the second sharpest increase in international orders since March 2011, S&P Global and HSBC said in a press release. India's manufacturing PMI edged up to 58.2 in April, the strongest sector health in 10 months. Output rose at its fastest rate since June 2024, supported by robust domestic and export demand. New orders and employment grew sharply, while selling prices surged to an 11.5-year high. Input costs rose modestly, yet firms passed these on. Optimism remained strong amid rising enquiries and stock building. This positive trend was accompanied by notable rises in employment and purchasing activity. 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. The headline figure was spurred by faster increases in stocks of purchases, employment and production. Indeed, output rose at a sharp rate that was the quickest since June 2024. Sub-sector data showed widespread expansions, with the fastest increase registered at consumer goods makers. A key factor contributing to the latest improvement in output growth was a sharp rise in new orders. Little-changed from March, the rate of expansion was the second strongest for nine months. Respondents attributed growth to better domestic and international demand. With the sole exception of January, new business from abroad grew to the greatest degree in over 14 years at the start of the 2025-26 fiscal year, as per the report. When reporting sources of demand growth, survey participants cited Africa, Asia, Europe, the Middle East and the Americas. The substantial improvement in order book volumes occurred despite a marked increase in prices charged for Indian goods. The overall rate of inflation was the highest seen in 11-and-half years. Reports from surveyed firms indicated that companies continued to transfer rising costs on to customers. Input prices rose at the fastest pace in four months during April, with businesses citing higher expenses for building maintenance, labour, leather, paper, rubber, steel, and transportation. The rate of inflation was moderate and below that seen for selling charges. The strength of new order inflows also led to another accumulation of outstanding business. Although slight, the rate of increase was at a 15-month high. 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 rate of job creation was marked by historical standards. 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. Input holdings increased to the greatest extent since August 2024. Conversely, post-production inventories fell at the quickest pace in nearly three-and-a-half years. Vendor delivery times shortened in April amid a lack of pressure on supplier capacity. Although the fastest in three months, lead times shortened only slightly. 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, added the report. '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. 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,' said Pranjul Bhandari, chief India economist at HSBC. Fibre2Fashion News Desk (SG)
