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TimesLIVE
an hour ago
- Business
- TimesLIVE
South African factory conditions deteriorate further, Absa PMI shows
A gauge of South African manufacturing sentiment fell further in May, with survey respondents citing persistent logistical issues that have held back demand. The seasonally-adjusted Purchasing Managers' Index (PMI) sponsored by Absa declined to 43.1 points from 44.7 in April. It was the seventh straight month that the headline PMI has been below 50, reflecting a deterioration in business conditions. One bright spot was the subindex tracking expected business conditions in six months' time, which increased to the highest level since the start of the year as global tariffs were suspended and firms expressed optimism that local political disagreements over policy would be resolved. 'The May PMI results underscore the fragile state of South Africa's manufacturing sector,' Absa said. 'While forward-looking sentiment has improved, underlying demand and activity levels remain weak and structural logistical challenges persist.' State-owned logistics group Transnet struggles to provide adequate freight rail and port services due to equipment shortages, maintenance backlogs and damage to its infrastructure from theft and vandalism.
Time of India
2 hours ago
- Business
- Time of India
India's manufacturing growth slows to 3-month low in May: PMI
Representative image Country's manufacturing sector lost some momentum in May, slipping to a three-month low as demand eased amid rising prices and ongoing geopolitical tensions, Reuters reported citing survey on Monday. Despite the slowdown, job creation in the sector surged to a record high, signaling resilience in the labor market, it said. The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, dropped to 57.6 in May from 58.2 in April, falling short of the earlier flash estimate of 58.3. Despite the dip, the reading remains comfortably above the 50.0 threshold that signals expansion in the sector. "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 economy grew by 7.4% in the last quarter compared to the same period a year ago—its fastest pace since early 2024. Output growth in manufacturing sector slowed to its weakest pace since February, but business confidence about the year ahead remained upbeat. A key highlight was a record surge in job creation, as manufacturers boosted hiring at an unprecedented rate—favoring permanent roles over temporary ones. "The acceleration in employment growth to a new peak is certainly a positive development," Bhandari said. Cost pressures in May mounted in manufacturing sector, with input price inflation rising to a six-month high. Manufacturers responded by raising prices, pushing output inflation to one of the highest levels seen in over 11 years. The surge in pricing pressures may pose a challenge for the Reserve Bank of India , which has already reduced its key repo rate by 50 basis points this year amid overall inflation staying below its 4.0% target. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
The Hindu
7 hours ago
- Business
- The Hindu
Rupee rises 12 paise to 85.43 against U.S. dollar in early trade
The rupee appreciated by 12 paise to 85.43 against the U.S. dollar in early trade on Monday (June 2, 2025) on the back of a weak American currency and favourable macroeconomic data that fuelled hope of a further reduction in key interest rate in the RBI's upcoming monetary policy. However, a volatile equity market, outflow of foreign funds and higher crude oil prices amid global trade related uncertainties weighed on the Indian currency, according to forex traders. Analysts also said that market participants will be closely monitoring key macroeconomic announcements for further cues. RBI's Monetary Policy Committee (MPC) will begin the deliberations on its next bi-monthly policy on June 4 and the outcome is scheduled to be announced on June 6. Besides, PMI (Purchasing Managers' Index) data for manufacturing and services sectors is also expected to be announced this week. At the interbank foreign exchange, the domestic unit opened at 85.55 and gained further ground to trade at 85.43 against the greenback in initial deals, registering a rise of 12 paise from its previous close. The rupee ended 7 paise lower at 85.55 against the dollar on Friday (May 30, 2025). Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.05%at 99.21. Brent crude, the global oil benchmark, rose 2.12% to $64.11 per barrel in futures trade. In the domestic equity market, the 30-share BSE Sensex tumbled 709.10 points, or 0.87%t, to 80,741.91, while the Nifty dropped 196.00 points or 0.79%t to 24,554.70. Foreign institutional investors (FIIs) sold equities worth ₹6,449.74 crore on a net basis on Friday (May 30, 2025), according to exchange data. According to the latest govern data released on Friday (May 30, 2025), the Indian economy expanded at a faster pace than expected in the last quarter of the 2024-25 fiscal. The GDP growth rate of 7.4% in January-March period of FY25 reflected a strong cyclical rebound that was helped by a rise in private consumption and robust growth in construction and manufacturing. The government also managed to meet its fiscal deficit target of 4.8% of the GDP for 2024-25, according to the provisional data released by the Controller General of Accounts on Friday (May 30, 2025). The country's gross GST collection remained above the ₹2 lakh crore mark for the second month in a row, rising 16.4% in May to over ₹2.01 lakh crore. Goods and Services Tax (GST) collection had touched a record high of ₹2.37 lakh crore in April. The Reserve Bank's weekly data released on Friday (May 30, 2025) showed India's forex reserves jumped by $6.992 billion to $692.721 billion during the week ended May 23. The reserve had dropped by $4.888 billion to $685.729 billion in the preceding week.
New Straits Times
8 hours ago
- Business
- New Straits Times
Asia's factory activity shrinks in May as US tariffs bite
TOKYO: Asia's factory activity shrank in May as soft demand in China and the impact of US tariffs took a heavy toll on companies, private surveys showed on Monday, highlighting the darkening outlook for the once fast-growing region. Trade-reliant Japan and South Korea continued to see manufacturing activity contract in May as US President Donald Trump's automobile tariffs cloud the outlook for exports. Adding to the gloom, an official survey on Saturday showed China's manufacturing activity shrank in May for a second month in a sign of weakness in the world's second-largest economy. With many Asian economies making little progress in trade negotiations with the US, uncertainty will likely keep companies from boosting production or spending, analysts said. "It's hard to expect a pick-up in Asia's manufacturing activity any time soon with countries in the region slapped with quite high 'reciprocal' tariffs," said Toru Nishihama, chief emerging market economist at Dai-ichi Life Research Institute. "With domestic demand weak, China is flooding Asia with cheap exports, which is also putting deflationary pressure on the region's economies," he said. Japan's final au Jibun Bank Manufacturing Purchasing Managers' Index (PMI) stood at 49.4 in May, up from April but staying below the 50.0 line that indicates contraction for the 11th successive month, a private survey showed on Monday. The PMI for South Korea, Asia's fourth-largest economy, stood at 47.7 in May, also staying below the 50 mark for a fourth month due to frail demand and the hit from US tariffs, a survey by S&P Global showed. Both Japan and South Korea saw their economies contract in the first quarter, as Trump's tariffs and uncertainty over US trade policy weighed on exports and corporate activity. There is little sign conditions will improve. On Friday, Trump said China had violated a two-way deal to scale back tariffs, whereas China contended it had maintained communication on trade with the United States. Trump also announced a doubling of worldwide steel and aluminium tariffs to 50 per cent, once again rattling international trade. Japan and the US on Friday agreed to hold another round of trade talks ahead of the G7 summit in June, but Japan's top tariff negotiator said no deal would be reached without concessions on all US tariffs, including on automobiles.
India.com
17 hours ago
- Business
- India.com
India Overtakes China As Worlds Cheapest Manufacturing Hub; What This Means For Country's Future
New Delhi: India has long been the world's fastest-growing economy. The country is now reaching the top in several key areas. It has recently claimed the number one spot among the countries with the lowest manufacturing costs. The milestone is a cause for concern for China. India continues to shine on the global economic stage. Whether it is the tariff tensions with the United States or the ongoing standoff with Pakistan, India is moving ahead in several sectors. The country recently leapfrogged Japan to become the world's 4th largest economy. But there is more to celebrate. India has not only made its mark in manufacturing and services but has also now claimed the title of the cheapest manufacturing destination in the world. And guess who is trailing behind? China – the 'factory of the world'. India's recent rise is not just about growth in GDP. According to new data released by World of Statistics from the U.S. News & World Report, India is now the most cost-effective country for manufacturing. In the past, China dominated this space. Vietnam follows in third place, while Thailand, the Philippines and Bangladesh round out the top five. What Does This Mean for India? India's affordable manufacturing costs are a game-changer. With lower expenses, it is becoming the preferred destination for global giants looking to cut costs. More and more companies are likely to set up manufacturing units in India, adding to its rising Foreign Direct Investment (FDI). This shift could deal a serious blow to China, which has long been the hub for international production. India's rising cost advantage is now attracting companies that previously only thought of China as their go-to destination. Where Does China Stand? China may have lost its crown in this sector, but it still remains a major player globally. However, the new data signals a significant shift in the manufacturing landscape, with India taking over the mantle. For China, this change is concerning because of its long-standing position as the world's factory. Global Manufacturing Race India's top spot is no fluke. According to JP Morgan's Purchasing Managers' Index (PMI), India's manufacturing PMI for April 2025 stood at 58.2, while the services PMI was at 58.7. Both figures highlight India's strong growth and position it at the forefront of global markets. By comparison, China, the United States and even France fall behind in the manufacturing cost race. How This Will Benefit India's Economy India's competitive advantage in manufacturing costs is a significant boost for its economy. As more businesses look for cost-effective production options, India stands to gain substantially. The potential rise in FDI and the relocation of manufacturing units will only accelerate India's economic growth. And for China, this is a wake-up call. Its dominance in manufacturing is under serious threat as India begins to take its place as the world's factory of choice.
