Manufacturing activity at 31-month high in May
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New Delhi: Manufacturing sector activities in the country have further increased to a 31-month high in May 2023. This information was given on Thursday in a monthly survey. The survey said that due to increase in new orders, favorable market conditions, more employment opportunities have also been created in the month under review. The seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) rose to 58.7 in May from 57.2 in April. This is the strongest improvement in the health of the sector since October, 2020.
The May PMI data pointed to an improvement in overall operating conditions for the 23rd consecutive month. In PMI parlance, a score above 50 indicates expansion, while a level below 50 indicates contraction. The PMI data shows that there is a strong demand for products made in India in the domestic market as well as in the international market, said Pollyanna De Lima, Associate Director, S&P Global Market Intelligence. The fundamentals of the economy have been strengthened by increasing domestic orders, while increasing overseas business has resulted in international participation and India’s dominance in the global market, he added.
According to the survey, international sales of companies have shown the fastest growth in six months. The report says that the increase in sales has been better than procurement at production, employment and volume levels. The report said that the pressure on the price front has been very low historically. Lima said that demand-driven inflation is not negative, but it could affect purchasing power, posing challenges for the economy and raising the possibility of interest rate hikes.
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