Search Global Export Import Trade Data
Recent Searches: No Recent Searches

India's May factory activity remained strong despite inflation worries.

Date: 01-06-2022
Subject: India's May factory activity remained strong despite inflation worries
India's factory activity expanded at a better-than-expected pace last month as overall demand remained resilient despite persistently high inflation, encouraging firms to hire at the fastest rate since January 2020, according to a private survey.

The survey comes just a day after official data showed Asia's third-largest economy expanded at an annual rate of 4.1% during the January-March quarter, its weakest in a year, amid rising risks from price pressures.

Still, the Manufacturing Purchasing Managers' Index , compiled by S&P Global, came in at 54.6 in May, slightly lower than April's 54.7 but above the 50-level separating growth from contraction for an eleventh month.

It was better than the Reuters poll median prediction of 54.2.

While new orders, a gauge of overall demand, increased strongly last month, albeit at a slower pace, foreign demand grew at its strongest pace since April 2011 despite worries over the Russia-Ukraine war, China's economic slowdown and high inflation.

"India's manufacturing sector sustained strong growth momentum in May," noted Pollyanna De Lima, economics associate director at S&P Global.

"In response to demand resilience, companies continued with their efforts to rebuild stocks and hired extra workers accordingly."

Firms hired workers at the quickest rate in nearly two and a half years, welcome news for the labour market. Unemployment rose to 7.83% in April from 7.60% in March, according to the Centre for Monitoring Indian Economy, a Mumbai-based private think tank.

But surging prices remained a major concern.

Although input price inflation eased a bit in May, output prices jumped at their fastest pace since October 2013, suggesting overall inflation would remain elevated over the coming months, which might aggravate the cost of living crisis.

"While firms appear to be focusing on the now, the survey's gauge of business optimism shows a sense of unease among manufacturers," added De Lima.

"The overall level of sentiment was the second-lowest seen for two years, with panellists generally expecting growth prospects to be harmed by acute price pressures."

The Reserve Bank of India, which surprised markets with a 40 basis point repo rate hike to 4.40% last month, is widely expected to hike rates aggressively over the next few months at least to combat soaring inflation.
Source Name:-Economic Times

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Exim Help

What is New?

Date: 04-08-2022
Notification No. 66/2022 - Customs (N.T.)
Exchange rate Notification No.66/2022-Cus (NT) dated 04.08.2022-reg.

Date: 03-08-2022
Notification No. 24/2022-Customs (ADD)
seeks to impose anti-dumping duty on Opal Glassware from UAE & China PR for a period of 5 years.

Date: 02-08-2022
Notification No. 21/2022-Central Excise
Seeks to further amend No. 04/2022-Central Excise, dated the 30th June, 2022, to reduce the Special Additional Excise Duty on Diesel.

Date: 01-08-2022
NOTIFICATION No. 17/2022 – Central Tax
Seeks to implement e-invoicing for the taxpayers having aggregate turnover exceeding Rs. 10 Cr from 01st October, 2022.

Date: 23-07-2022
Notification No. 44/2022-Customs
Seeks to amend notification No. 49/2021 - Customs, dated 13.10.2021, in order to extend the concessional Agriculture Infrastructure and Development Cess [AIDC] of Nil on Lentils (Mosur) up to and inclusive of the 31st March, 2023.

Date: 21-07-2022
Notification No. 64 /2022 - Customs (N.T.)
Exchange rate Notification No.64/2022-Cus (NT) dated 21.07.2022-reg.

Date: 20-07-2022
Notification No. 43/2022-Customs
Seeks to amend notification No. 22/2022-Customs, dated 30.04.2022 to enable TRQ holders to import gold through IIBX under TRQ mechanism of India-UAE CEPA .

Date: 19-07-2022
Notification No. 19/2022-Central Excise
Seeks to exempt the excisable goods, namely Petrol, Diesel and Aviation Turbine Fuel from Special Additional Excise Duty and Road and Infrastructure Cess when exported from units located in the Special Economic Zones (SEZ).

Date: 19-07-2022
Notification No. 18/2022-Central Excise
Seeks to reduce the Special Additional Excise Duty on production of Petroleum Crude and export of Aviation Turbine Fuel.

Date: 19-07-2022
Notification No. 17/2022-Central Excise
Seeks to amend No. 04/2022-Central Excise, dated the 30th June, 2022, to reduce the Special Additional Excise Duty on exports of Petrol and Diesel.

Exim Guru Copyright © 1999-2022 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.


C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001