FX.co ★ India Manufacturing PMI Revised Lower

The HSBC India Manufacturing PMI was adjusted to 57.6 in May 2025, down from 58.2 in April, falling below the initial estimate of 58.3. Although this indicates a three-month nadir, it continues to reflect a robust enhancement in business conditions. The growth in both new orders and production moderated but remained vigorous, driven by strong demand. Despite this, advancements were somewhat tempered by inflation, fierce competition, and geopolitical tensions between India and Pakistan. Employment reached unprecedented levels, while input purchasing continued to be robust, albeit marginally slower than in April. Interestingly, backlogs remained stable, halting a six-month trend of accumulation. The supply chain also saw improvements, with lead times decreasing to their shortest in four months. In terms of pricing, input cost inflation climbed to its highest point in six months, prompting companies to increase their selling prices at one of the swiftest paces observed in over a decade. Business optimism remained high, buoyed by effective marketing strategies and an influx of new client inquiries.