Business activity declines in May as rising fuel costs weigh on private sector

Manufacturing PMI hits 3-month high in May despite cost pressures

India's Manufacturing PMI rose to 55.0 in May (3-month high), driven by domestic demand and civil engineering projects, even as input cost inflation hit near 4-year peaks due to energy, fuel and Middle East supply pressures. Manufacturers are absorbing costs rather than passing them on, signaling margin compression ahead — a leading indicator for procurement and capex planning in India-linked supply chains.