2023.06.0106:47:00UTC+00India's Manufacturing Growth Hits 31-Month High

India's manufacturing activity expanded at the fastest pace in more than two-and-a-half years on the back of record growth in input stocks amid robust demand conditions, the results of the purchasing managers' survey from S&P Global showed on Thursday.

The manufacturing Purchasing Managers' Index, or PMI, rose to 58.7 in May from 57.2 in April. A reading above 50 indicates expansion in the sector. The expected score was 56.5.

Factory orders increased significantly and at the quickest rate since January 2021, supported by strong demand, a positive economic environment, and successful advertising.

There was a sharp, accelerated increase in purchases in May, the strongest expansion rate in 12 years. Increasing new business and efforts to replenish stocks fueled buying growth.

Manufacturing companies registered the quickest expansion in international sales for six months, thereby boosting India's position in the global market.

As a result of growing new orders and favorable market conditions, Indian manufacturers increased production volumes at the steepest pace in 28 months.

Data showed that the rate of employment growth improved to a six-month high in May.

On the price front, input prices rose at a softer pace, thanks to smoother logistics. In contrast, selling price inflation accelerated to a one-year high.?

The level of business confidence regarding growth prospects increased to a five-month high in May.