New Delhi: India’s factory activities continued to remain robust with manufacturing PMI (Purchasing Managers’ Index) hitting a 31-month high of 58.7 in May 2023 from 57.2 in the previous month on the back of stronger increase in new orders, according to a survey released by S&P Global on Thursday.
The survey said that demand conditions demonstrated remarkable strength during this period with factory orders rising at the fastest pace since January 2021.
“This surge in sales paved the way for stronger increases in production, employment and quantities of purchases,” said S&P Global.
As per a media release on findings of the survey, May data indicated a sharp and accelerated increase in quantities of purchases, with the rate of expansion quickening to the strongest in over 12 years.
According to survey members, ongoing increases in new business and efforts to replenish stocks underpinned growth of buying levels.
The survey said that not only did factory orders increase for the twenty-third month running in May, but also to the greatest extent since January 2021. Firms generally associated the upturn with advertising demand strength and a favourable economic climate.
Exports gave impetus to total new orders in May. Companies registered the quickest expansion in international sales for six months, said the survey.
Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence said, ” The PMI’s spotlight on soaring sales showcases robust demand for Indian-made products both domestically and internationally. While the upturn in domestic orders strengthens the foundations of the economy, rising external business foster international partnerships and boost India’s position in the global market. Combined, they also generated more employment opportunities in May.”