India’s factory growth: Manufacturing activity at 18-month low in December: Survey
New Delhi: Manufacturing activity in the country slowed to an 18-month low December as the rate of expansion of new orders A survey on Wednesday showed that softened, but overall, it remained strong and business confidence remains strong in the coming months.
HSBC’s India Manufacturing Purchasing Managers’ Index (PMI) slowed to an 18-month low of 54.9 in December from 56 in November, but it was a sign of a notable improvement in the health of the sector. The latest reading was above the trend of the longer-term series but contributed to the lowest quarterly average (55.5) since the first quarter of fiscal year 2022-23. The 50-point mark separates expansion from contraction. The survey is compiled from responses to questionnaires sent to purchasing managers at a panel of approximately 400 manufacturers.
“India’s manufacturing sector continued to expand in December, although at a slower pace than the previous month’s growth. Both the Output And new orders softened, but on the other hand, the future output index rose since November. “The rates of increase in input and output prices remained broadly unchanged,” said Pranjul Bhandari, chief India economist at HSBC.
According to the panelists, new business gains, favorable market conditions, fairs and exhibitions collectively drove another sharp increase in manufacturing output during December. But, the rate of expansion slowed to its weakest since October 2022, even though it remained above its long-term average. Growth was reportedly curbed by reduced demand for certain types of products.
HSBC’s India Manufacturing Purchasing Managers’ Index (PMI) slowed to an 18-month low of 54.9 in December from 56 in November, but it was a sign of a notable improvement in the health of the sector. The latest reading was above the trend of the longer-term series but contributed to the lowest quarterly average (55.5) since the first quarter of fiscal year 2022-23. The 50-point mark separates expansion from contraction. The survey is compiled from responses to questionnaires sent to purchasing managers at a panel of approximately 400 manufacturers.
“India’s manufacturing sector continued to expand in December, although at a slower pace than the previous month’s growth. Both the Output And new orders softened, but on the other hand, the future output index rose since November. “The rates of increase in input and output prices remained broadly unchanged,” said Pranjul Bhandari, chief India economist at HSBC.
According to the panelists, new business gains, favorable market conditions, fairs and exhibitions collectively drove another sharp increase in manufacturing output during December. But, the rate of expansion slowed to its weakest since October 2022, even though it remained above its long-term average. Growth was reportedly curbed by reduced demand for certain types of products.
