Manufacturing sector in India remained robust in May on the back of new orders with a surge in global demand which was the strongest in over 11 years.
However, a survey compiled from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers, indicates that the segment faced the brunt of solid inflationary pressures.
At 54.6 in May, little changed from 54.7 in April, the S&P Global India Manufacturing Purchasing Managers’ Index (PMI) pointed to a sustained recovery across the sector. The above-50 reading was the 11th in as many months and consistent with a solid improvement in operating conditions. The 50-point mark separates expansion from contraction.
The Indian manufacturing sector had been hit hard by the lockdowns that were imposed to prevent the spread of the coronavirus infection. Since the lifting of curbs, the sector has been scripting a robust recovery but the war in Ukraine and the disruption in supply chains has again dented the turnaround and heaped pressures on prices.
According to Pollyanna De Lima, economics associate director at S&P Global Market Intelligence, “India’s manufacturing sector sustained strong growth momentum in May. Thanks in part to the sharpest rise in international sales for 11 years, total new orders expanded further”.
