Amid weaker expansions in output, new orders and employment, India’s manufacturing activity eased in the month of May. As per the survey report, the seasonally adjusted Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - slowed down to 51.2 in May from 51.6 in April. However, the reading remained above the watershed 50 mark indicating expansion.
According to the report, thought the output grew to continue expansion rally for tenth successive month on favourable demand conditions, rate of expansion slowed to a modest pace in May. Higher production witnessed in consumption and intermediate groups. Besides, new orders at manufacturing companies also surged in the reported month with enhanced marketing initiatives but at the modest pace. Indian manufacturers also reported the strongest gain in new export orders since February, aided by greater demands from international markets.
Besides, manufacturing employment increased softly, on account of greater production requirements. However, outstanding business rose in May, on greater volumes of new business along with delay in payments by clients. On the inflation front, both input and output price inflation picked-up to the strongest since February, with rising prices of raw materials such as oil and steel.