India Manufacturing Growth Hits 18-Month Low in December
In December, India's manufacturing sector growth slowed to an 18-month low, as indicated by the HSBC India Manufacturing Purchasing Managers' Index (PMI), which is compiled by S&P Global. The PMI dipped to 54.9 from November's 56.0, signaling a less robust increase in new orders and output. Despite the slowdown, the index remained above the 50-point threshold, indicating the sector's continued expansion for the 30th consecutive month. Indian manufacturers maintained a positive outlook for the year ahead, with the data revealing a 21st consecutive month of increased international order receipts.
Input costs for manufacturers in India rose at the second-slowest rate in over three years, pointing to a minimal rate of inflation. Factory orders and output saw a sharp increase, contributing to the continued growth of the manufacturing sector, even though the overall production growth softened due to a decrease in demand for some product types. The survey found that manufacturers were optimistic, expressing the highest level of confidence in three months when looking at the output outlook for the upcoming year. The sector's employment levels remained stable, suggesting that manufacturers are not under significant pressure to adjust their workforce capacity.
