The country's manufacturing activity slowed in May due to heat and elections

Mumbai: The country's manufacturing activity slowed to a three-month low in May due to heat and elections. A survey report said that the heat forced some companies to reduce working hours in manufacturing units, affecting the production of goods.

The HSBC Purchasing Managers' Index (PMI) compiled by S&P Global for the manufacturing sector stood at 57.50 in May, down from 58.80 in April.

The manufacturing sector performed slowly but export orders showed strength. In some states of the north and west of the country, the temperature was more than 50 degrees in May. Apart from the temperature, the elections held last month also affected the functioning of the units.

The number of workers was low due to elections and holiday period. The manufacturing sector PMI has been seen above 50 for the last three years. Export orders reached a 13-year high last month. In the March GDP data released last week, the country's economic growth rate was 7.80 percent year-on-year.

Export orders increased for the 26th consecutive month in May. Positive corporate sentiment remained at a nine-year high as a result of high export orders. The report said that the mood of company managers was seen to be positive with the expectation of strong demand and with the increase in new orders, the recruitment of employees was also seen to be the highest since November 2022.