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Informist, Thursday, May 21, 2026

 

--India May flash composite PMI output index 58.1 vs 58.2 April final

--India May flash services PMI activity index 58.9 vs 58.8 April final

--India May flash manufacturing PMI 54.3 vs 54.7 in April final

 

NEW DELHI – Growth in India's private sector activity eased marginally in May due to a slowdown in demand, S&P Global said Thursday. Slower demand also limited the rise in inflation despite cost pressures, S&P Global said. 

 

The HSBC Flash Composite Purchasing Managers' Index moderated to 58.1 in May from 58.2 in April. The flash figures showed slightly weaker business activity due to slower increases in total new orders, international sales, and employment, compiler S&P Global said in a release.

 

Activity in the services sector picked up to a six-month high, while the manufacturing sector saw a fall in the pace of activity. The flash services PMI inched up to 58.9 in May from the final print of 58.8 in April. The flash manufacturing PMI fell to 54.3 in May from 54.7 in April. A purchasing managers' index reading of more than 50 denotes expansion in activity from the previous month, while a print below 50 indicates contraction.

 

The data suggested that the pick-up in growth across the services sector was "offset by a weaker increase in factory production, one that was the second-slowest since mid-2022." "There was a notably softer expansion in new export orders across India's private sector economy in May, the weakest in 19 months," it said.

 

Manufacturers saw the second weakest pace of expansion in activity in close to four years, mainly due to competitive pressures, challenging demand conditions, disruptions to travel and the war in West Asia, S&P Global said. "The Manufacturing PMI remained broadly in line with its long-run average, supported by continued inventory building," Pranjul Bhandari, chief India economist at HSBC, said in the release.

 

According to the latest data, manufacturers continued with their stockpiling efforts as buying levels rose at the fastest pace in three months. Meanwhile, inventories of finished goods increased for the second month in a row, S&P Global said. "Although moderate, the uptick was the strongest in 11 years."

 

Cost pressures intensified, with input prices rising at the sharpest rate since July 2022. "After retreating in April, input price inflation ticked higher, but firms limited the pass-through of additional cost burdens to clients by lifting output charges to a lesser extent," S&P Global said.

At the composite level, the rate of input price inflation reached its second-highest in nearly three years in May. "This acceleration stemmed from more pronounced cost pressures across the manufacturing industry, where the latest rise was the steepest since July 2022," S&P Global said.

 

Participants in the survey reported higher prices of energy, food, fuel, gas, iron, leather, oil, plastics, rubber, steel and transportation. Amid inflation risks, domestic companies increased selling prices cautiously, the release said.

 

Service providers hired at the "greatest extent in nearly a year". On the other hand, there was softening in job creation on the manufacturing side, S&P Global said.

 

Businesses remained confident in May, with the overall level of positive sentiment remaining above its long-run average despite retreating to a three-month low, S&P Global said. "Competitive pricing strategies, marketing efforts and hopes of better market conditions in the coming months underpinned optimism."  End

 

Reported by Shweta

Edited by Avishek Dutta

 

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