Managers listed aluminum, cement, iron, leather, rubber and sand, among others, such as the main sources of cost pressures in May
The creation of employment in manufacturing increased to new maximums even when the purchasing managers index (PMI) fell to a minimum of 3 months in May to 57.6 compared to 58.2 or April, Global S&P reported Monday.
The manufacture currently represents approximately 17 percent of India’s GDP (Gross Domestic Product) and is considered a key work multiplier.
“May manufacturing PMI of India pointed out another month of robust growth in the sector, although the production expansion rate and new orders decreased from the previous month. The acceleration in employment growth to a new peak is certainly a positive development,” said Pranjul Bhandari, chief economist of India in HSBC.
PMI is derived according to the responses of purchase managers or 400 companies. The index above 50 indicates expansion, while falling below 50 means constitution.
A detailed S&P report said that the expansion rhythm was acute and solved only marginally since April. Companies also hired additional personnel in May, with the employment creation rate that goes up to a new series of the series. Among 12 percent of the panelists who reported older olders, the creation of permanent work roles presented more prominently than that of short -term positions. “The creation of sustained employment allowed manufacturers to be aware of their workloads in May,” he said.
Price increase
Meanwhile, he thought that general inflation has decreased, companies still face price pressure. The report stressed that May was another month when purchase prices uploaded. Managers listed aluminum, cement, iron, leather, rubber and sand, among others, such as the main sources of cost pressures. The general inflation rate was solid and the highest since November 2024.
In addition to higher material costs, manufacturers also reported greater disbursements on charging and labor. As a result of the increase in operational expenses and backed by strong demand, companies increased their sales prices in May. The inflation of the load rate was marked, little changed since April and above its long -term trend.
“Input cost inflation is increasing, but manufacturers seem to be able to classify pressure on gains margins by increasing production prices,” Bhandari added.
Speaking about the future, the report said that Indian manufacturers were still strongly with an increase in production over the next 12 months. Among the main growth opportunities, they commented on advertising and new customer consultations.
