Managers listed aluminium, cement, iron, leather, rubber and sand, among others, as the main sources of cost pressures in May
| Photo Credit:
PRIYANSHU SINGH
Job creation in manufacturing rose to new highs even as Purchasing Managers’ Index (PMI) dipped to a 3-month low in May to 57.6 as against 58.2 of April, S&P Global reported on Monday.
Manufacturing currently accounts for roughly 17 per cent of India’s GDP (Gross Domestic Product) and is considered as a key job multiplier.
“India’s May manufacturing PMI signalled another month of robust growth in the sector, although the rate of expansion in output and new orders eased from the previous month. The acceleration in employment growth to a new peak is certainly a positive development,” said Pranjul Bhandari, Chief India Economist at HSBC.
PMI is derived on the basis of responses from purchasing managers of 400 companies. Index being above 50 indicates expansion, while dropping below 50 means contraction.
A detailed report by S&P Global said that the pace of expansion was sharp and eased only marginally since April. Firms also hired additional staff in May, with the rate of job creation climbing to a new series record. Among the 12 per cent of panellists that reported higher headcounts, the creation of permanent job roles featured more prominently than that of short-term positions. “Sustained job creation enabled manufacturers to stay on top of their workloads in May,” it said.
Meanwhile, though overall inflation has come down, companies are still facing price pressure. The report highlighted that May was another month when purchasing prices went up. Managers listed aluminium, cement, iron, leather, rubber and sand among others as the main sources of cost pressures. The overall rate of inflation was solid and the highest since November 2024.
In addition to greater material costs, manufacturers also reported greater outlays on freight and labour. As a result of rising operating expenses and supported by strong demand, firms increased their selling prices in May. The rate of charge inflation was marked, little-changed from April and above its long-run trend.
“Input cost inflation is picking up, but manufacturers seem to be able to lessen the pressure on profit margins by raising output prices,” added Bhandari.
Talking about the future, the report said that Indian manufacturers remained strongly confident of a rise in output over the course of the coming 12 months. Among the main opportunities for growth, they remarked on advertising and new customer enquiries.
Published on June 2, 2025
Managers listed aluminium, cement, iron, leather, rubber and sand, among others, as the main sources of cost pressures in May
| Photo Credit:
PRIYANSHU SINGH
Job creation in manufacturing rose to new highs even as Purchasing Managers’ Index (PMI) dipped to a 3-month low in May to 57.6 as against 58.2 of April, S&P Global reported on Monday.
Manufacturing currently accounts for roughly 17 per cent of India’s GDP (Gross Domestic Product) and is considered as a key job multiplier.
“India’s May manufacturing PMI signalled another month of robust growth in the sector, although the rate of expansion in output and new orders eased from the previous month. The acceleration in employment growth to a new peak is certainly a positive development,” said Pranjul Bhandari, Chief India Economist at HSBC.
PMI is derived on the basis of responses from purchasing managers of 400 companies. Index being above 50 indicates expansion, while dropping below 50 means contraction.
A detailed report by S&P Global said that the pace of expansion was sharp and eased only marginally since April. Firms also hired additional staff in May, with the rate of job creation climbing to a new series record. Among the 12 per cent of panellists that reported higher headcounts, the creation of permanent job roles featured more prominently than that of short-term positions. “Sustained job creation enabled manufacturers to stay on top of their workloads in May,” it said.
Meanwhile, though overall inflation has come down, companies are still facing price pressure. The report highlighted that May was another month when purchasing prices went up. Managers listed aluminium, cement, iron, leather, rubber and sand among others as the main sources of cost pressures. The overall rate of inflation was solid and the highest since November 2024.
In addition to greater material costs, manufacturers also reported greater outlays on freight and labour. As a result of rising operating expenses and supported by strong demand, firms increased their selling prices in May. The rate of charge inflation was marked, little-changed from April and above its long-run trend.
“Input cost inflation is picking up, but manufacturers seem to be able to lessen the pressure on profit margins by raising output prices,” added Bhandari.
Talking about the future, the report said that Indian manufacturers remained strongly confident of a rise in output over the course of the coming 12 months. Among the main opportunities for growth, they remarked on advertising and new customer enquiries.
Published on June 2, 2025
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It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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