Business conditions for manufacturing firms improved minimum in May and India Manufacturing Purchasing Managers’ Index – 50.7 against 50.5 in April.
Though this was the 5th direct month of improvement in the index, it was also the slowest increasing in manufacturing production in the period and was one of the worst readings since end of 2013.
This latest above-50 reading show an overall increasing in operating conditions in the 5th month, but one that was overall profit.
A reading above 50 represents development while one below this level means contraction.
Challenging economic situation In the Indian manufacturing sector were obvious in May, with output losing further developing momentum. The headline PMI remained in development territory, but recorded one of its minimum readings since the end of 2013, proposing that the sector is barely improving.
Though, the economy increase at 7.9 per cent in the 2015-16, industrial production has been lower than estimated in March and the currently data is likely to improve calls for a cut rate by the Reserve Bank of India in its second monthly monetary policy analysis on June 7. Retail inflation, however, leap to 5.39 per cent in April.
New export orders by PMI survey expanded at a faster pace and order book volumes improve, but the development in both were below the trend. Worryingly, new export orders cut down for the first time in 32 months.
Data implied that increase was centered on the domestic market. Currently drop in new export orders was the first since September 2013, with survey participants pointed on downcast global demand.
Intermediate goods were the good performing category in May with higher development in new orders and output as tally to consumer goods. Investment goods firms, in other way, saw further reject in new work and production.
Manufacturing PMI improves to 50.7 in May
