Manufacturing sector PMI gains in May

The country’s manufacturing sector performance gained momentum in May as companies lifted output amid strengthening demand conditions, leading to further job creation in the sector, a monthly survey said on Monday.

The Nikkei India Manufacturing Purchasing Managers’ Index, improved to 52.7 in May from 51.8 in April, pointing to the strongest improvement in the health of the sector in three months. This is the 22nd consecutive month that the manufacturing PMI has remained above the 50-point mark. In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction.

“A revival in new order growth promoted a faster upturn in manufacturing production, as Indian firms sought to replenish inventories utilised in May to fulfil strengthening demand,” said Pollyanna De Lima, principal economist at IHS Markit and author of the report. The upbeat mood among goods producers, coupled with a solid increase in new work, underpinned further job creation in the sector. “Employment has risen in each month since April 2018,” the survey noted.