India’s manufacturing activity logged its weakest growth of 2024 in December with the Manufacturing Purchasing Managers’ Index, or PMI, declining to a 12-month low of 56.4, down from 56.5 in November.
December 2024 was the second month in a row that witnessed a decline in activity.
The data indicated sluggish demand in the sector despite easing cost pressures and strong employment growth.
The HSBC Final India Manufacturing PMI, compiled by S&P Global, showed that while the headline figure was down from November, it remained above its long-run average of 54.1, thereby indicating a robust rate of growth.
December experienced a continued rise in output and new orders but the improvement eased.
The HSBC India Manufacturing Purchasing Managers’ Index averaged over 57.5 in 2024, compared with 56.8 in 2023.
With yet another decline in manufacturing PMI, India’s manufacturing prospects don’t look good.
The PMI reading at 56.8 for the quarter (October-December) was lower than 57.4 witnessed in the July-September quarter.
“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,” said Ines Lam, economist, HSBC.
“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,” Ines Lam, Economist at HSBC, said.
“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,” Lam added.
As per HSBC, new export orders rose at the fastest pace since July.
Manufacturing PMI data is an economic indicator that measures the activity in the manufacturing sector.
The data is based on a survey of purchasing managers across manufacturing industries and provides insights into business conditions, including production, new orders, employment, supplier delivery times, and inventory levels.
The Manufacturing PMI data is closely watched as an early indicator of economic health, helping businesses, policymakers, and investors gauge trends in the manufacturing industry and overall economy.
With inputs from agencies.
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India’s factory output at 12-month low, December second month of declining activity in a row
