India's manufacturing sector showed a positive response in May. HSBC India's manufacturing purchasing managers index scored 55, which generated employment, new orders, and new stock purchases. If the score is above 50, then it shows expansion in infrastructure projects and new business gains.
Pranjul Bhandari, HSBC Chief India Economist, said that stocks of finished goods increased rapidly, and according to historical trends, there is growth in production that has created new job opportunities in the manufacturing sector in India. New export orders have increased, and businesses are confident that cost pressures might reduce next year. There was a strong order pipeline that has helped to achieve positive growth. This data is compiled by S and P Global as they get responses from purchasing managers in a 400 manufacturers panel.
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