In May, the PMI of India's manufacturing Purchasing Managers' Index hit a record 31-month high. The seasonally adjusted PMI rose from 57.2 in April to 58.7 in May. S&P Global attributed the rise in manufacturing PMI to a significant increase in new orders in its release.
The report further said monitored companies showed better supply-chain conditions and sustained increases in input purchasing boosted inventory growth. India's manufacturers said they increased production volumes as a result of growing new orders and favourable market conditions.
In May, factory orders rose to the greatest extent since January 2021, S&P Global said. The release also listed exports as a key factor in rising orders in May, as companies saw an uptick in international sales in the last 6 months.
S&P Global Market Intelligence Economics Associate Director Pollyanna De Lima said the growth in manufacturing sector activity PMI indicates robust demand for Indian products in domestic and international markets.
While the upturn in domestic orders strengthens the foundations of the economy, rising external business foster international partenariats and enhance India's position in the global market, De Lima said. The unemployment rate also rose in May, which resulted in a significant increase in job opportunities. The record increase of input stocks should allow firms to migrate potential disruptions, maintain a steady flow of production and demonstrate the industry's resilience when faced with challenges.
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