The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 55.0 in May from April's 54.7, higher than a preliminary estimate of 54.3

A reading above 50.0 indicates growth. New orders - a key gauge of demand - ‌grew at the fastest ⁠rate since February, driven by civil engineering projects, competitive pricing and favourable demand conditions

Domestic demand was the primary engine ⁠of growth, as export orders, while still expanding solidly, increased at their slowest pace in three months

Factory output rose at its quickest pace in three ​months ​with intermediate and capital goods leading the ​way. But consumer goods makers ‌saw growth ease

Hiring continued although the pace of job creation slowed from April

Input price inflation was the second-strongest, excluding April, in roughly four years - driven by higher outlays for energy, fuel, materials and transportation, with the Middle East war cited as a contributing factor. Capital goods producers ‌faced the sharpest cost increases among the three ​sub-sectors tracked

Selling price inflation eased from ​April and remained below the ​rate of input cost growth as competitive pressures restrained ‌firms from passing on the full burden ​to customers

Despite ​elevated costs manufacturers sharply increased purchasing activity - at the fastest rate in three months - partly to build contingency stocks

Business confidence fell to ​the lowest since ‌February but remained positive with companies expressing hope that cost pressures ​would ease, supported by strong order pipelines and marketing efforts