India's manufacturing sector activity expanded at a slower
pace in the month of December, hitting a 12-month low and indicating a weaker
improvement in operating conditions. 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. According
to the survey report, the seasonally adjusted HSBC India Manufacturing
Purchasing Managers’ Index (PMI) eased to 56.4 in December as against 56.5 in
November.
With container, material, and labour costs reportedly rising
since November, Indian manufacturers registered another increase in overall
expenses. Having eased since the previous month, the rate of input price
inflation was moderate by historical standards. Selling prices rose to a
greater extent than cost burdens, and one that was stronger than seen on
average in the near 20-year series history.
The survey report further stated that ongoing improvements
in new work intakes prompted manufacturing companies in India to purchase
additional inputs for use in production processes. The rate of growth remained
above its trend, despite being the second-slowest in 2024 (faster only than in
November). With regards to input inventories, purchasing growth and shorter
lead times underpinned another monthly increase. The rate of accumulation was
sharp, albeit the weakest since December 2023.
Looking to 2025, Indian manufacturers were confident of a rise in output. Optimism reflected advertising, investment, and the expectation of favourable demand. Sentiment was nevertheless curbed by concerns around inflation and competitive pressures.
 has reported a.png)
.png)
.png)
.png)
.png)
.png)
.png)
.png)
.png)
.png)
.png)
.png)
