According to a survey, manufacturing activity remained strong in May and increased to a 31-month high due to steady demand, improvement in supply chains, and a strong increase in new orders.
India’s manufacturing Purchasing Managers’ Index (PMI) shows the health sector has improved significantly since October 2020. The 50-point mark separates expansion from contraction. The survey comprises purchasing managers in a panel of over 400 manufacturers.
Since the restrictions to stop the coronavirus’s spread were lifted, manufacturing has improved. According to the most recent statistics, the industry expanded by 4.5% in the fourth quarter of 2022–2023 after decreasing by 1.4% in the previous quarter.
The survey’s findings indicated large gains in production, employment, and quantities of purchases. Companies reported a record accumulation in input inventories as supply chain conditions improved.
Out of the five PMI subcomponents, stocks of purchases stood out, gaining momentum in May at an all-time high.
The PMI’s focus on growing sales demonstrates the strong demand for products domestically and internationally produced in India. While the recovery in domestic orders fortifies the economy’s pillars, growing foreign business promotes global partnerships and boosts India’s standing in the market.
According to a global market intelligence representative, this increased employment opportunities in May.
