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Indian manufacturing activity steadied in the month of May, with new orders and production increasing at similar rates to those registered in April. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) fell to 54.6 in May from 54.7 in April.

The report further said that companies were able to secure new work despite lifting selling prices at the fastest rate in over eight-and-a-half years as additional cost burdens continued to be transferred to clients. Besides, demand showed signs of resilience in May, improving further in spite of another uptick in selling prices. Companies reported a marked increase in total new orders that was broadly similar to April.

Further, manufacturing sector jobs rose further in May, owing to ongoing improvements in sales. Although only slight, the rate of employment growth picked up to the strongest since January 2020. In May, there was a notable uptick in growth of new export orders. The rate of expansion was sharp and the fastest since April 2011.

On the inflation front, input costs rose for the twenty-second successive month in May, with companies reporting higher prices for electronic components, energy, freight, foodstuff, metals and textiles. Although softer than in April, the rate of inflation remained historically elevated.