New Delhi, June 2 (KNN) India's factory output in May expanded at the quickest pace in the last 31 months owing to improvement in supply chains and stronger increase in new orders, according to the latest report released by S&P Global on Thursday.

The Manufacturing Purchasing Managers' Index, compiled by S&P Global, rose to over a 2-1/2 year high of 58.7 in May from April's 57.2. Reuters had pegged a drop to 56.5. It remained above the 50-mark separating growth from contraction for a 23rd consecutive

As per reports, the manufacturing sector has improved since the lifting of curbs imposed to prevent the spread of the coronavirus. Latest data showed the sector grew 4. 5 per cent in the fourth quarter of 2022-23 after contracting 1. 4 per cent in the previous quarter.

The S&P Global survey revealed that the surge in sales paved the way for stronger increases in production, employment and quantities of purchases. With supply chain conditions improving further, companies noted a record accumulation in input inventories.

Out of the five PMI subcomponents, stocks of purchases showed notable vigour, increasing at an unprecedented pace in May.

Pollyanna De Lima, economics associate director at S&P Global Market Intelligence said, “The PMI’s spotlight on soaring sales showcases robust demand for India-made products both domestically and internationally. While the upturn in domestic orders strengthens the foundations of the economy, rising external business foster international partnerships and boost India’s position in the global market. Combined, they also generated more employment opportunities in May.”

The survey is compiled from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers.  (KNN Bureau)