The growth of the country’s manufacturing sector declined to the lowest level in 18 months in December.
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Despite low inflation, the growth of the country’s manufacturing sector 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. This information has been received from a monthly survey released on Wednesday. HSBC India’s manufacturing PMI survey shows modest growth in factory orders and output. However, business confidence has strengthened for the coming year. This survey has been conducted by S&P Global. The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) declined to 54.9 in December, 2023. This is its lowest level in 18 months. In November, 2023 it was at the level of 56. PMI’s above 50 means expansion.
Whereas 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 nearly 400 manufacturers. “India’s manufacturing sector continued to expand in December,” said Pranjul Bhandari, HSBC’s chief economist in India. However, the pace of growth slowed down last month. The growth of both production and new orders has moderated. However, the future production index has increased since November.” Despite slowing growth, the sector has recorded a strong expansion in December. Analysts included in the panel say that manufacturing output 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. The survey says companies have seen notable gains from Asia, Europe, West Asia and North America. On the price front, the cost of production 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.
Disclaimer: IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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