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Informist, Monday, Jun. 1, 2026

 

--India May manufacturing PMI 55.0 vs 54.7 in April

 

NEW DELHI – India's manufacturing sector activity rose in May due to higher sales and new orders leading to stockpiling, S&P Global said on Monday. The HSBC India Manufacturing Purchasing Managers' Index rose to 55.0 in May from 54.7 in April.

 

The final manufacturing PMI print for May was higher than the flash figure of 54.3, data for which was released on May 21. "The final PMI print pointed to the best improvement in the health of the sector for three months," compiler S&P Global said in a release. "Goods producers reported the fastest expansions in new orders and output since February."

 

A PMI reading of more than 50 denotes expansion in activity, while a print below shows contraction.

 

"India's final manufacturing PMI points to another month of possible precautionary stockpiling as the Middle East conflict remains unresolved," said Pranjul Bhandari, chief India economist at HSBC. "New order growth was driven by domestic demand, as export order growth moderated." Within goods production, stronger increase was seen in the intermediate and capital goods categories compared with a slowdown in consumer goods, according to compiler S&P.

 

As per the report, survey participants pointed to strong demand, infrastructure projects, and new business gains to explain the slight rise in PMI in May. The expansion in international sales was solid, the report said, with order received from Asia, Europe, Kenya, Nigeria and the West Asia.

 

Input cost pressures was the strongest in four years in May, S&P Global said. "On the price front, the war in the Middle East continued to exert pressure on cost burdens," it said. This signalled "greater outlays on energy, fuel, materials and transportation." 

 

Although factory gate charges across India rose solidly in May, the rate of inflation was below that seen for input costs and the average over the past year, as per the report. While 8% of companies signalled the pass-through of cost increases to customers, others refrained from doing so due to competitive pressures, it added.

 

Despite the cost pressures, the pace of growth in buying levels was sharp, signalling attempts being made to raise contingency stocks, the release said. The data also showed "back-to-back increases" in stocks of finished goods as supply exceeded demand. "Although moderate, the pace of accumulation was the highest in 11 years," S&P Global said. This also led to another round of job creation across the manufacturing industry.

 

According to the compiler, manufacturers remained positive, hoping that cost pressures will fade later in the year. "Advertising and strong order pipelines also supported optimism towards growth prospects," S&P Global said.  End

 

Reported by Shweta

Edited by Akul Nishant Akhoury

 

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