India’s PMI Slowed A Bit In May

MUMBAI - Although India’s PMI contracted slightly from 53.8 to 53.4 in May, it is an indication of an improvement in manufacturing operating conditions, according to ABN AMRO India Purchasing Managers’ Index (PMI) released Friday.
Index readings above 50.0 signal expansion from the previous month, while readings below 50.0 indicate contraction.
Output levels in the Indian manufacturing economy continued to show a sharp increase in May, although the rate of output growth slowed somewhat since the previous month.
Firms indicated that they had expanded production at their plants in response to rising sales.
Volumes of total incoming new business increased at a strong rate, with the domestic market remaining the principal source of sales.
Higher volumes of new orders contributed to a second consecutive monthly increase in levels of unfinished work in the Indian manufacturing economy.
Pre-production inventories also rose, partly as a result of higher quantities of purchases. Stocks of finished goods, however, declined for a third successive month.
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