India's May production, new orders rise at rates close to Apr figures

Total sales were boosted by a substantial upturn in international orders, the strongest in over 11 years. At 54.6 in May, little-changed from 54.7 in April, the seasonally adjusted S&P Global India Manufacturing purchasing managers’ index (PMI) pointed to a sustained recovery across the sector.

The above-50 reading was the eleventh in as many months and consistent with a solid improvement in operating conditions, the company said in a press release.

Demand showed signs of resilience in May, improving further in spite of another uptick in selling prices. Companies reported a marked increase in total new orders that was broadly similar to April.

May data also highlighted a notable uptick in growth of new export orders. The rate of expansion was sharp and the fastest since April 2011.

Amid reports of new business gains, sustained improvements in demand and looser COVID-19 restrictions, manufacturers continued to scale up production in May.

The rate of growth was marked, above trend and broadly in line with that recorded in April. Indian manufacturers signalled a further increase in output prices halfway through the first quarter of fiscal 2022-23.

Input costs rose for the 22^nd successive month in May, with companies reporting higher prices for textile, electronic components, energy, freight, foodstuff, metals and.

Firms signalled an upturn in pre-production inventories. The accumulation was the eleventh in as many months and marked overall.

In contrast, holdings of finished products decreased further in May. The latest fall was only marginal, however, and the slowest in the current 58-month sequence of depletion.

Manufacturing sector jobs rose further in May, owing to ongoing improvements in sales. Although only slight, the rate of employment growth picked up to the strongest since January 2020.

Capacity pressures among goods producers remained only mild in May, as signalled by a marginal increase in outstanding business volumes. The rate of accumulation was broadly similar to those seen in the current five-month period of expansion.

Business sentiment was dampened by inflation concerns in May, with the overall level of confidence the second-lowest in just over two years.

Fibre2Fashion News Desk (DS)