New Delhi, June 2
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 added.
The 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.
Firms across the country reported rising interest from key markets in Asia, Europe, West Asia, and the United States.
Manufacturing companies also stepped up hiring in May, with job creation reaching a record high since the PMI survey began.