India's manufacturing sector growth slowed to a three-month low of 57.5 in May due to heatwaves and rising costs.

India's manufacturing sector experienced slower growth in May, reaching a three-month low of 57.5, down from 58.8 in April. The slowdown was attributed to heatwaves and rising production costs. Despite this, the manufacturing sector still expanded and saw new export orders rise at their highest level in 13 years, driven by strong international sales. Manufacturing employment rose to one of the highest levels since 2005, and positive sentiment among firms led to increased job creation. However, rising material and freight costs led to a squeeze in manufacturing margins.

June 03, 2024
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