Big decline in India’s manufacturing sector, PMI reaches lowest level in 18 months
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India PMI Data: India’s rapidly growing economy suffered a setback in December. There has been a slowdown in the country’s construction sector in the month of December. According to HSBC India’s manufacturing PMI survey report, despite low inflation, the growth of the country’s manufacturing sector has declined to its lowest level in 18 months or one and a half years in December due to slow growth in factory orders and production. The report states that manufacturing factories in almost all sub-sectors are suffering from lack of orders and production. However, HSBC India has claimed in its report that business confidence has strengthened for the coming year. This survey has been done by S&P Global. The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) fell to an 18-month low of 54.9 in December 2023. In November, 2023 it was at the level of 56. In the language of PMI, above 50 means in detail. At the same time, a figure of less than 50 indicates contraction. S&P Global has prepared the HSBC India Manufacturing PMI based on responses to a questionnaire sent to purchasing managers of about 400 manufacturers.
Expansion continued in December
HSBC’s Chief Economist in India Pranjul Bhandari said that the expansion of India’s manufacturing sector continued in December also. However, the pace of growth remained slow last month. The growth of both production and new orders has slowed down. However, the future production index has increased since November. Despite slowing growth, the sector recorded strong expansion in December. Analysts included in the panel say that manufacturing production has increased in December due to favorable market conditions, fairs and exhibitions. December data shows that there has been an increase in international order receipts of goods producers in the country.
production costs reduced
The survey says that companies have got significant benefits from Asia, Europe, West Asia and North America. Talking about the price front, the increase in production cost has increased at the second lowest rate in the last three and a half years. The survey said that if we look at the production scenario of the coming year, Indian manufacturers are very excited for the next three months. Business confidence has increased in December due to advertising, better customer contact and new enquiries.
Conditions were better in November
Manufacturing activities in India were excellent in the month of November. Activity improved mainly due to easing of rising price pressure and strong demand from customers. The S&P Global India Manufacturing Purchasing Managers’ Index was 56 in November. In October it was at an eight-month low of 55.5. According to S&P, one of the main reasons for the improvement in manufacturing activities was the reduction in the pressure of rising prices. Although average purchasing costs rose again in November, the inflation rate was the lowest in the current 40-month sequence of increases. Pauliana de Lima, associate director of economics at S&P Global Market Intelligence, said India’s manufacturing industry continued its strong performance in November. The pace of growth in production increased again. He said the ability of companies to secure new business, both domestically and abroad, was central to the success of the sector. Continuous receipt of new orders became good news for the labor market of the region. Recruitment had also increased.
,with language input,
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