The month of May has brought good news for the country’s economy. The country’s manufacturing sector has run the fastest this year. According to the figures, the manufacturing sector has reached a four-month high. Strong factory orders and production are being considered for this. The S&P Global India Manufacturing Purchasing Managers’ Index rose to 57.2 in April from 56.4 in the previous month.
Improvement seen in
According to Paulina de Lima, Economic Associate Director of S&P Global India Manufacturing Purchasing Managers’ Index, the sector has seen a boom in the month of April due to new orders and increase in production. Price pressure has been seen less on the companies. Along with this, the sector has also benefited from better international sales and improvement in supply chain conditions. According to De Lima, it seems that the Indian manufacturer has a lot of opportunities to move forward.
Foreign demand also increased
New orders and production both grew at their fastest pace since December, and helped firms resume hiring during April after their first decline in 13 months in March. Foreign demand has also seen a boom in the four months in April. According to De Lima, manufacturers are certainly upbeat about growth, with pending approvals of contracts, increasing customer enquiries, marketing initiatives and flexibility in demand raising expectations.
Increase in operational cost
According to the survey, there has been a tremendous increase in the input cost in April, although there was an improvement in demand, due to which the companies could have put some burden on the customers, but this was not seen. Retail inflation is not likely to end yet. According to De Lima, there is an indication of an increase in the operational cost of the manufacturer. Which also includes fuel, metal, transportation and raw material.