Industryweek 6763 India Flag Png Promogifcropdisplay

India Manufacturing Output Hits 3-month High

June 2, 2014
The momentum in the manufacturing sector improved at the margin, thanks to higher domestic and export order flows, says HSBC.

NEW DELHI -- As overall factory output growth picked up pace slightly, Indian manufacturing orders hit a three-month high in May, suggesting stronger output in the coming months, a business survey showed Monday.

The HSBC Purchasing Managers' Index (PMI), based on a survey of 500 manufacturers, is keenly watched as a portent of industrial expansion in Asia's third-largest economy.

The survey comes as business is looking to new Prime Minister Narendra Modi to engineer a rebound in a country beset by sluggish economic growth.

"The momentum in the manufacturing sector improved at the margin, thanks to higher domestic and export order flows," said Frederic Neumann, HSBC co-head of Asian economics.

The HSBC PMI showed new orders, an important forward-looking indicator, jumped a full point to 53.2 from 52.5 in April while overall manufacturing output edged up to 51.4 in May from 51.3 in April.

The figures followed gross domestic product data late Friday which showed India's economy still stuck in low gear, growing by 4.7% in the 12 months to March this year, marking the second straight year of sub-five percent expansion.

While India's growth outlook has improved considerably since Modi, seen as pro-business, took office last week, the latest data was a reminder of the steep challenges facing the new government, economists said.

"The election was clearly a game changer. Still, it's important to remain realistic about how quickly things will improve," Neumann said, adding even if "the low point may be past us, the recovery will likely prove only gradual".

India's PMI figures generated less optimism than HSBC's China PMI released on Sunday that showed factory activity in the world's second-largest economy expanding at the fastest rate in five months in May, stoking hopes the Chinese economy was regaining traction.

Copyright Agence France-Presse, 2014

Popular Sponsored Recommendations

3D Printing A More Efficient Factory Floor

Nov. 16, 2023
Today’s additive manufacturing platforms make it simple to print a wide range of high-performing industrial parts as soon as possible and right where you need them — unlocking...

Navigating Disruption: A Leader’s Guide to Strategy Under Uncertainty

Nov. 1, 2023
AI, sustainability, digital--industrials are facing disruptive forces that are redefining what it takes to win. What got your company where it is today won’t get you where you...

Powering Up Productivity: The Transformative Power of AP Automation in Manufacturing

Oct. 25, 2023
Discover how AP Automation is revolutionizing the manufacturing industry, driving efficiency, cost savings, and security. In today's world, automation is the key to staying competitive...

Why DataOps may be the key to unlocking the full potential of digital transformation

Nov. 3, 2023
Read the 2023 market survey conducted by IndustryWeek

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!