India: Heatwave drags manufacturing growth

India's manufacturing sector experienced a slight slowdown in growth in May, reaching a three-month low due to the impact of an intense heatwave on production volumes. Despite this, the sector remained in expansionary territory, with the Purchasing Managers' Index (PMI) figure slipping to 57.5 from 58.8 in April, as reported by HSBC. Companies reported reduced working hours and softer rises in new orders and output, although international sales saw the greatest increase in over 13 years. The sector continued to expand, supported by new business gains, demand strength, and successful marketing efforts. New orders grew at a substantial pace, albeit the slowest in three months, driven by marketing efforts, demand strength, and favorable economic conditions. Competition and election-related disruptions were cited as factors hindering growth. On the export front, new export orders increased at a faster pace in May, marking the strongest upturn in over 13 years. Firms noted gains from customers across various regions including Africa, Asia, the Americas, Europe, and the Middle East.