India's Mfg PMI Eases to Three-Month Low in May

India's manufacturing sector activity dropped to a three-month low in May as growth in new orders and output softened, a private survey showed on Monday.

- Rhik Kundu

NEW DELHI:

The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, fell to 57.6 in May from 58.2 in April and 58.1 in March. India's manufacturing PMI was 56.3 in February and 57.7 in January.

A reading above 50 indicates expansion. "Although rates of increase in new orders and output retreated to three-month lows, they remained well above their respective long-run averages," the survey said. "Panelists suggested demand strength continued to support sales and production, though competition, inflation and the India-Pakistan conflict reportedly weighed on growth."

In May, India and Pakistan were locked in a sharp four-day border conflict, marked by heavy shelling and multiple casualties, after tourists were killed in Kashmir in an attack allegedly carried out by Pakistan-backed terrorists.