PMI Manufacturing: India’s manufacturing growth hits 12-month low in December, PMI figures released
New Delhi| The growth rate of India’s manufacturing sector fell to a 12-month low in December, as new business orders and slower growth in production followed. This information was given in a monthly survey on Thursday.
The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index stood at 56.4 in December, down from 56.5 in November, reflecting a weak improvement in operating conditions. Despite the decline, the key figure remained above its long-term average of 54.1, indicating a strong growth rate. In the language of PMI, a digit above 50 denotes expansion, while a digit below 50 denotes contraction.
HSBC economist Ines Lam said, “India’s manufacturing activity remained strong in 2024 with a softening trend amid further signs of a bearish trend in the industrial sector”. The rate of expansion in new orders remained the slowest in the year, indicating weak future output growth” The growth of the manufacturing sector was hampered by competition and price pressure. Lam said there has been some growth in the growth of new export orders, which have grown at the fastest pace since July.
“Although the rate of new export sales remained slow compared to total new business, the pace of growth of exports strengthened, as companies were able to receive international orders from around the world”, the survey said According to the survey, the “substantial” rate of growth resulted in a further substantial increase in procurement levels and employment.
The improvement in new employment led manufacturing companies in India to buy additional inputs for use in production processes, and on the employment front, about one in ten companies recruited additional employees, while less than 2 percent of companies cut jobs.
On the prices front, Indian manufacturers recorded another increase in overall expenditure, with container, material and labor costs reportedly rising since November. However, on a month-to-month basis, the input price inflation rate was moderate by historical standards. The HSBC India Manufacturing PMI is compiled from replies to a questionnaire sent to purchasing managers in a panel of around 400 manufacturers on behalf of S&P Global.
“Although the rate of new export sales remained slow compared to total new business, the pace of growth of exports strengthened, as companies were able to receive international orders from around the world”, the survey said According to the survey, the “substantial” rate of growth resulted in a further substantial increase in procurement levels and employment.
The improvement in new employment led manufacturing companies in India to buy additional inputs for use in production processes, and on the employment front, about one in ten companies recruited additional employees, while less than 2 percent of companies cut jobs.
On the prices front, Indian manufacturers recorded another increase in overall expenditure, with container, material and labor costs reportedly rising since November. However, on a month-to-month basis, the input price inflation rate was moderate by historical standards. HSBC India Manufacturing PA
