Excellent growth in the country's manufacturing sector: PMI increased to 58.7 in May, it was 57.2 in April

In the last few months, there has been tremendous growth in the manufacturing sector of the country. This information has been given in the S&P Global Purchasing Managers' Index (PMI) data. According to the PMI data released on Thursday (June 1), demand has picked up in many sectors in May.
According to PMI data, May's manufacturing PMI increased from 57.2 in April to 58.7, which is the highest in 31 months. This is the 22nd consecutive time that India's manufacturing has remained above 50. A PMI reading above 50 indicates an expansion in manufacturing activity, while a reading below 50 indicates a contraction in manufacturing activity.
S&P Global said, 'India's manufacturing PMI has seen encouraging growth in May, which shows the positive picture of this sector. Since January 2021, orders from factories are increasing at a rapid pace.
The agency further said, 'The increase in sales also paved the way for a strong increase in production, employment, and procurement volumes. There has been further improvement in the supply chain situation in May. Along with this, companies have done record storage in input inventory.
S&P Global has said that in May the exports of companies registered the fastest expansion in the last 6 months. Manufacturers have increased production amid rising new orders and favorable market conditions. S&P Global further said, 'The rate of increase in production in May was the fastest in 28 months.'
Employment opportunities have increased rapidly in the middle of the first financial quarter. During this, the rate of growth of employment has reached the highest level of 6 months. The average cost burden grew at a moderate rate, well below their long-term average. Selling prices grew at a solid and faster rate in May, reversing the trend for input costs, S&P Global said. Also, the inflation rate has reached its highest level in a year.
The Purchasing Managers' Index (PMI) is an indicator of the economic health of the manufacturing sector. Through this, the economic condition of a country is assessed. The PMI is based on a number of activities in the private sector, including the services sector. Almost all the countries involved in this are compared with the same criteria.
The main purpose of the PMI is to provide corroborative information about the economy even before the official data, thereby giving accurate signals about the economy in advance. PMI is based on 5 main factors. These five key factors include new orders, inventory levels, production, supply deliveries, and the employment environment.