The seasonally adjusted Nikkei India Manufacturing Purchasing Managers (PMI) edged higher in May, posting 50.7, marginally up from April’s 50.5.
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“The fall in demand for Greek goods, from both domestic and global markets, continued to take its toll on goods producers and remains a key roadblock for future economic recovery”, said Markit economist Samuel Agass.
Production also posted its strongest increase since January, while manufacturers raised hiring for the second month running even as job creation remained unchanged from April and modest overall.
The Caixin China PMI, an indicator slanted toward private and export-oriented manufacturing companies, however dipped to 49.2 in May from 49.4 in April, and below the neutral 50 mark for the 15th successive month.
The sub-index for new orders settled at 50.7, slightly lower than 51 in the previous month but remaining in expansion territory for a third month, indicating steady market demand. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting.
CONDITIONS in Singapore’s manufacturing sector worsened for the 11th straight month in May, with its headline purchasing managers’ index (PMI) coming in at 49.8.
A reading above 50 signals growth. Last month panel members had blamed high costs of a range of raw materials such as metals, chemicals, plastics, paper and food as the cause.
The combination of these two factors resulted in a hefty fuel price increase effective from today, which will continue to put pressure on costs. Fourteen industries reported growth in new orders, while four industries, including apparel, leather and allied products and transportation equipment, reported a decline.
“Whereas new orders expanded at a faster pace, the upturn in output softened”.
De Lima said there is little evidence so far that the latest cut in the benchmark rate acted to significantly improve business conditions for manufacturers. “The government still needs to make full use of proactive fiscal policy measures accompanied by a prudent monetary policy to prevent the economy from slowing further”, said Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group.
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Manufacturers purchased more inputs during May, taking the current sequence of expansion in buying levels to five months.
