India's manufacturing sector maintained robust expansion in May, albeit at a slightly reduced pace due to the impact of an intense heatwave on production volumes, according to survey results released by S&P Global on Monday.
The seasonally adjusted HSBC Manufacturing Purchasing Managers' Index (PMI) fell to 57.5 in May from 58.8 in April. Nevertheless, any score above 50.0 signifies expansion.
The sector's overall strong growth was driven by new business gains, robust demand, and effective marketing strategies.
Conversely, the slowdown was attributed to diminished working hours caused by the severe heat and rising production costs.
New orders grew at the slowest rate in three months, hampered by competition and disruptions related to elections.
However, new export orders surged at the fastest pace in over thirteen years in May, with significant gains from customers in Africa, Asia, the Americas, Europe, and the Middle East.
Indian manufacturers exhibited the highest confidence in growth prospects in more than nine years. This optimism was bolstered by advertising, innovation, and an anticipation of favorable economic and demand conditions.
As a result, manufacturing employment increased to one of the highest levels recorded since the survey began in 2005.
On the pricing front, cost pressures remained strong in May, leading to an acceleration in output price inflation, which reached its highest level in eight months.
