Financial News: India Manufacturing Growth Strongest In 3 Months

India Manufacturing Growth Strongest In 3 Months

06/01/2026 - 03:13:00 (RTTNews)

(RTTNews) - India's manufacturing activity expanded at the fastest pace in three months, driven by quicker rises in new orders, output, and input buying amid precautionary stockpiling as the Middle East conflict remains unresolved, final survey data from S&P Global showed on Monday.

The HSBC manufacturing purchasing managers' index rose to 55.0 in May from 54.7 in April. The flash score was 54.3. A reading above 50 indicates expansion in the sector.

The upturn in May was largely attributed to demand strength, infrastructure projects, and new business gains.

Both new orders and output grew at the fastest rate since February, with stronger increases registering in the intermediate and capital goods categories. Meanwhile, new export orders rose at a softer pace but remained solid amid gains from Asia, Europe, Kenya, Nigeria, and the Middle East.

On the price front, input price inflation intensified in May as the war in the Middle East continued to exert pressure on cost burdens. The cost inflation was pushed by higher costs for energy, fuel, materials, and transportation. Output price inflation also remained sharp but remained below that seen for input costs.

Despite price pressure, Indian manufacturers purchased more materials in order to raise contingency stocks. Higher production requirements tempted firms to increase employment at a solid pace.

Looking ahead, business confidence stayed positive as companies hoped that cost pressures will fade later in the year. The optimism is also supported by advertising and strong order pipelines.

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