New Delhi: India’s factory activities continued to grow but expanded at a slower pace in December 2024 with manufacturing purchasing managers’ index (PMI) compiled by S&P Global hitting 12-month low of 56.4 during the month, as per the survey data released on Thursday.
At 56.4 in December, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) was at a 12-month low and indicated a weaker improvement in operating conditions,” the private survey said.
The headline figure in December was down from 56.5 in November but remained above its long-run average of 54.1 thereby signalling a robust rate of growth.
A PMI print below 50 means contraction while above it shows expansion in activities.
The HSBC India Manufacturing PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers. It is one of the closely-watched high-frequency data by economists, markets and policy-makers.
“India’s manufacturing activity ended a strong 2024 with a soft note amidst more signs of a slowing trend, albeit moderate, in the industrial sector. The rate of expansion in new orders was the slowest in the year, suggesting weaker growth in future production,” said Ines Lam, Economist at HSBC.
“That said, there was some uplift in the growth of new export orders, which rose at the fastest pace since July. The rise in input prices eased slightly, wrapping up the year when Indian manufacturers felt the strain of sharp cost pressures.”
The survey revealed that cost pressures receded in December 2024 and were mild but charge inflation remained historically high.
“Although new export sales rose at a slower rate than total new business, the pace of growth for the former strengthened as firms were able to secure international orders from across the globe,” the survey said.
The survey further said that the rate of manufacturing sector job creation quickened to the fastest in four months in December 2024.
“Around one-in-ten companies recruited extra staff, while fewer than 2% of firms shed jobs,” it noted.
