India's manufacturing activity continued to expand strongly in May, though at the weakest pace in three months amid slower rises in new orders and output, data compiled by S&P Global showed on Monday.
The HSBC final manufacturing Purchasing Managers' Index dropped to 57.6 in May from 58.2 in April. The flash reading was 58.5. Nonetheless, a score above 50.0 indicates expansion.
Both output and new orders rose at the slowest pace in three months, linked to cost pressures, fierce competition, and the India-Pakistan conflict. The overall sales growth was driven by healthy domestic and international demand, alongside successful marketing initiatives.
A positive demand environment encouraged firms to increase their purchasing activity and workforce numbers in May, with the rate of job creation climbing to a new series record.
On the price front, input price inflation accelerated to the highest since November 2024, led by higher costs for aluminum, cement, iron, leather, and rubber. As a result, selling price inflation remained marked in May.
Looking ahead, Indian goods producers remained strongly confident of a rise in output over the next 12 months on the back of fruitful advertising and new customer inquiries.
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December 19, 2025 15:10 ET U.S. inflation data and interest rate decisions by major central banks were the highlights of this busy week for economics news flow. Employment data and survey results on the housing markets also gained attention in the U.S. In Europe, the European Central Bank and Bank of England announced their policy decisions and macroeconomic projections.