<p>New Delhi: India’s manufacturing sector growth slipped to a three-month low in May as India-Pakistan conflict impacted production and new orders, as per an industry survey report released by S&P Global <br>on Monday.</p><p>Purchasing Managers’ Index (PMI) for manufacturing fell to 57.6 in May from 58.2 in the previous month.</p><p>Although rates of increase in new orders and output retreated to three-month lows, they remained well above their respective long-run averages. A PMI reading above 50.0 signals an expansion in the sector, whereas a value below 50.0 indicates contraction.</p><p>Manufacturing firms suggested that the growth in the sector during the month under review was impacted due to cost pressures, fierce competition and India-Pakistan conflict. The PMI report is based on a survey conducted among around 400 manufacturing companies in the country.</p>.National Manufacturing Mission to be launched in June: NITI Aayog CEO.<p> “India’s May manufacturing PMI signalled another month of robust growth in the sector, although the rate of expansion in output and new orders eased from the previous month,” said Pranjul Bhandari, Chief India Economist at HSBC.</p><p>Companies that participated in the survey linked growth in the sector to “healthy domestic and international demand, alongside successful marketing initiatives.”</p><p>New export orders during the month under review rose at one of the strongest rates recorded in three years. Panel members remarked on favourable demand from Asia, Europe, the Middle East and the US, S&P Global said.</p><p>Another positive was the increase in headcounts by the manufacturing companies. The rate of job creation climbed to the fastest level since the S&P Global started PMI report. Around 12% of the surveyed companies reported higher headcounts. The creation of permanent job roles featured more prominently than that of short-term positions.</p><p>“The acceleration in employment growth to a new peak is certainly a positive development. Input cost inflation is picking up, but manufacturers seem to be able to lessen the pressure on profit margins by raising output prices,” said Bhandari. </p><p>Sustained job creation enabled manufacturers to stay on top of their workloads. Outstanding business volumes in May were unchanged, ending a six-month period of accumulation.</p><p>Cost pressures intensified during the month. Manufacturing companies reported sharp increase in input prices led surge in prices of aluminium, cement, iron, leather, rubber and sand. The overall rate of inflation in the sector during the month of May was the highest since November 2024.</p><p>In addition to greater material costs, manufacturers also reported jump in outlays on freight and labour. As a result of rising operating expenses and supported by strong demand, firms increased their selling prices in May, S&P Global noted in the report.</p>
<p>New Delhi: India’s manufacturing sector growth slipped to a three-month low in May as India-Pakistan conflict impacted production and new orders, as per an industry survey report released by S&P Global <br>on Monday.</p><p>Purchasing Managers’ Index (PMI) for manufacturing fell to 57.6 in May from 58.2 in the previous month.</p><p>Although rates of increase in new orders and output retreated to three-month lows, they remained well above their respective long-run averages. A PMI reading above 50.0 signals an expansion in the sector, whereas a value below 50.0 indicates contraction.</p><p>Manufacturing firms suggested that the growth in the sector during the month under review was impacted due to cost pressures, fierce competition and India-Pakistan conflict. The PMI report is based on a survey conducted among around 400 manufacturing companies in the country.</p>.National Manufacturing Mission to be launched in June: NITI Aayog CEO.<p> “India’s May manufacturing PMI signalled another month of robust growth in the sector, although the rate of expansion in output and new orders eased from the previous month,” said Pranjul Bhandari, Chief India Economist at HSBC.</p><p>Companies that participated in the survey linked growth in the sector to “healthy domestic and international demand, alongside successful marketing initiatives.”</p><p>New export orders during the month under review rose at one of the strongest rates recorded in three years. Panel members remarked on favourable demand from Asia, Europe, the Middle East and the US, S&P Global said.</p><p>Another positive was the increase in headcounts by the manufacturing companies. The rate of job creation climbed to the fastest level since the S&P Global started PMI report. Around 12% of the surveyed companies reported higher headcounts. The creation of permanent job roles featured more prominently than that of short-term positions.</p><p>“The acceleration in employment growth to a new peak is certainly a positive development. Input cost inflation is picking up, but manufacturers seem to be able to lessen the pressure on profit margins by raising output prices,” said Bhandari. </p><p>Sustained job creation enabled manufacturers to stay on top of their workloads. Outstanding business volumes in May were unchanged, ending a six-month period of accumulation.</p><p>Cost pressures intensified during the month. Manufacturing companies reported sharp increase in input prices led surge in prices of aluminium, cement, iron, leather, rubber and sand. The overall rate of inflation in the sector during the month of May was the highest since November 2024.</p><p>In addition to greater material costs, manufacturers also reported jump in outlays on freight and labour. As a result of rising operating expenses and supported by strong demand, firms increased their selling prices in May, S&P Global noted in the report.</p>