The HSBC India Manufacturing Purchasing Managers' Index (PMI) experienced a modest decline in May 2024, indicating a deceleration in the manufacturing sector's growth. The PMI for May dropped to 57.5, down from 58.4 in April 2024. This update was confirmed on June 3, 2024.
Despite this slight dip, the PMI remains well above the 50-mark, which distinguishes expansion from contraction. The current reading suggests that while growth has slowed, the sector continues to expand robustly. Industry analysts attribute the decline to various factors, including supply chain disruptions and fluctuating demand.
Market participants are now closely watching how the Indian manufacturing sector will respond in the coming months. Continued expansion at current levels might still present opportunities for investors, even though the pace has somewhat slowed.
