Latest news with #ManufacturingPurchasingManagers'Index
Mint
a day ago
- Business
- Mint
India services activity hits three-month high in May on strong export growth; employment rises by record
New Delhi: India's services sector output rose to a three-month high in May, driven by strong export growth, even as the pace of new business and activity remained largely unchanged from levels in the previous three months. The seasonally adjusted HSBC India Services PMI Business Activity Index, compiled by S&P Global, edged up to 58.8 in May from 58.7 in April and 58.5 in March, staying well above the 50-mark that indicates expansion. However, it was still below February's 59. Employment rose by a record as companies scaled up operations to match sustained growth in sales, the latest survey showed. Price indicators pointed to stronger inflation in input costs and output charges, with both rising above their historical averages, it added. "Strong international demand continued to fuel services activity, as evidenced by the new export business index's uptick from April,' said Pranjul Bhandari, chief India economist at HSBC. 'To keep up with swelling demand, India's service providers heavily increased staff recruitment. Indeed, the employment index rose to the highest reading ever recorded by this survey. Meanwhile, price pressures continued to intensify with input prices and charged prices both rising last month." India's services sector—a pillar of its economy—accounts for more than half of the country's gross domestic product. India's GDP expanded 6.5% in FY25, bolstered by a 7.4% growth in the January-March quarter. The economy grew 9.2% in FY24, driven by a 7.8% expansion in the January-March quarter, and surpassing the Reserve Bank of India's 7% forecast. The RBI projects 6.5% GDP growth in FY26, driven by rural demand, public investment, and strong services exports. India's manufacturing sector activity dropped to a three-month low in May as growth in new orders and output softened. The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, fell to 57.6 in May from 58.2 in April and 58.1 in March. India's manufacturing PMI was 56.3 in February and 57.7 in January. The HSBC India Composite PMI Output Index stood at 59.3 in May, slipping slightly from 59.7 in April, indicating a continued sharp expansion in overall activity. "The downward movement in the headline index reflected softer growth of factory production, as services activity rose at a quicker pace," the survey said. "Regarding new business, there were slightly weaker increases at manufacturing companies and their services counterparts. At the composite level, the pace of growth remained sharp despite easing to a three-month low."
BusinessToday
2 days ago
- Business
- BusinessToday
Malaysia's PMI Remains Contracted Amid Weak Demand And Tariff Concerns
Malaysia's Manufacturing Purchasing Managers' Index (PMI) saw a marginal increase to 48.8 in May, up from 48.6 in April, according to the latest data. However, the index remained below the neutral 50.0 mark for the twelfth consecutive month since June 2024, signaling a continued, albeit mild, deterioration in manufacturing conditions midway through the second quarter of 2025. Despite the prolonged contraction, economists anticipate that Malaysia's Manufacturing GDP growth in 2Q25 is likely to remain relatively stable, mirroring the performance of the previous quarters (1Q25: 4.1%; 4Q24: 4.2%). Weak Demand Persists, Weighing on Key Indicators: The latest PMI reading highlights the persistent challenge of weak demand. Total new orders continued their downward trend for the third straight month, although the pace of decline has eased. Notably, new export orders also contracted for the sixth consecutive month, indicating sluggish external demand. Finished goods inventories continued to decline, suggesting manufacturers are adjusting to lower order volumes. While the rate of inventory reduction has slowed, overall stock levels remain lower. Rising Input Costs Amid Stable Output Prices: Manufacturers faced increased pressure from rising input costs in May. Input prices saw their most significant jump since November 2024, primarily attributed to unfavorable exchange rates and the impact of new tariffs, which have increased the cost of imported raw materials. Interestingly, despite the higher input costs, output charges remained unchanged in May, ending a four-month period of price declines. This suggests that manufacturers are absorbing some of the cost increases rather than passing them on to consumers. Business Optimism Dips Amid Global Uncertainties: Business sentiment within the manufacturing sector has taken a hit, falling to its lowest level since June 2021. While firms expressed relative optimism for better demand conditions in the coming year, the prevailing concerns surrounding US trade tensions and ongoing labor shortages have dampened overall confidence. Employment levels remained steady in May, halting a seven-month streak of job cuts. Companies continued to work through outstanding orders, with backlogs declining slightly. Outlook: Domestic Demand to Provide Cushion Amid Tariff Uncertainty: MIDF Research has revised its 2025 GDP growth forecast for Malaysia downwards to 4.3% (from 4.8%), following a weaker-than-expected performance in 1Q25 (4.4%). The downgrade also factors in anticipated headwinds in the second half of the year stemming from global trade uncertainty linked to potential US tariffs. While the possibility of a favorable Malaysia-US trade deal exists, a return to pre-2024 tariff levels is deemed unlikely. Despite these external challenges, MIDF believes that Malaysia could still benefit from trade and investment diversion resulting from the ongoing US-China decoupling, leveraging its strategic location and diversified export portfolio. Domestically, the services and construction sectors are expected to be key drivers of growth, providing a buffer against external pressures Related
Entrepreneur
2 days ago
- Business
- Entrepreneur
India's Manufacturing PMI Stays Resilient Amid Rising Costs: Report
You're reading Entrepreneur India, an international franchise of Entrepreneur Media. India's manufacturing sector continued to show strong momentum in May, registering another month of solid growth in business conditions. Despite a slight dip in the headline figures, the data paints a picture of a sector that is holding firm against multiple headwinds—from inflation and stiff competition to geopolitical uncertainty. The seasonally adjusted Manufacturing Purchasing Managers' Index (PMI) fell from 58.2 in April to 57.6 in May, marking a three-month low. Still, it remained well above the neutral threshold of 50.0 and significantly higher than the long-run average of 54.1. The survey, compiled by S&P Global, suggests that while the rate of improvement has moderated, the underlying momentum in the sector remains robust. "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," noted Pranjul Bhandari, chief India economist at HSBC. Her assessment aligns closely with the report's findings, which indicate that although output and new orders lost some steam, both metrics remained strong by historical standards. Demand—both domestic and international—continued to underpin the sector's performance. The report states that successful marketing strategies and steady interest from key global markets such as Asia, Europe, the Middle East, and the US contributed to a sustained influx of new export orders. In fact, new export orders rose at one of the fastest paces recorded in the past three years, a clear sign of India's increasing integration into global supply chains. This demand has spurred manufacturers to act. Input buying remained aggressive, and the sector saw a record surge in hiring. Among companies that reported increased headcounts, 12 per cent of the total surveyed, there was a marked preference for permanent hires over short-term staffing. This hiring boom helped manufacturers manage workloads effectively, leading to a rare stabilisation in outstanding business volumes after six months of accumulation. Bhandari underscored the significance of this labour market trend: "The acceleration in employment growth to a new peak is certainly a positive development." Her observation is grounded in the report's data, which highlights that job creation reached its highest level since the series began—an indicator of rising business confidence and long-term planning. Yet, the optimism is tempered by persistent inflationary pressures. Input costs rose at the fastest pace in six months, with manufacturers citing higher prices for aluminium, cement, iron, leather, rubber, and sand. Freight and labour costs also edged up. This squeeze on margins prompted companies to increase their selling prices to one of the largest extents seen in nearly a dozen years. "Input cost inflation is picking up, but manufacturers seem to be able to lessen the pressure on profit margins by raising output prices," Bhandari added. The report supports this view, noting that the rate of charge inflation remained elevated and above the long-run average, as firms capitalised on strong demand to pass on costs. Supply chain dynamics also offered a silver lining. Vendors were more efficient in May, with average lead times shortening to the greatest degree in four months. This allowed firms to build up inventories of purchases at one of the fastest rates since August 2024. However, finished goods inventories declined for the sixth consecutive month, reflecting sustained product movement and possibly efforts to keep inventory lean amid cost concerns. Despite the turbulence—rising costs, fierce competition, and ongoing tensions between India and Pakistan—confidence in future output remains high. The data may not tell a story of unbridled acceleration, but it does speak to a sector that is adapting, investing, and pushing forward. The Indian manufacturing engine is still very much running strong.
Hans India
2 days 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
3 days 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.
