<p>New Delhi: India’s manufacturing sector growth slipped to 12-month low in December, dragged by weak demand as rate of expansion in new orders dipped to the lowest in a year, as per an industry survey report released by S&P Global on Thursday.</p><p>Purchasing Managers’ Index (PMI) for manufacturing declined to 56.4 in December from 56.5 in the previous month.</p><p>“December data showed the sector improving to the least extent in 2024, amid softer increases in output, new orders and stocks of purchases,” S&P Global said in its monthly report.</p>.Core sector output growth rises to 4-month high in November.<p>Despite the decline, December PMI remained above its long-run average of 54.1. The PMI print above 50 indicates growth in the sector while below 50 shows contraction.</p><p>“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 at HSBC.</p><p>“The rate of expansion in new orders was the slowest in the year, suggesting weaker growth in future production. That said, there was some uplift in the growth of new export orders, which rose at the fastest pace since July,” Lam added.</p>.<p>In December, 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.</p><p>Looking into 2025, Indian manufacturers were confident of a rise in output. Optimism reflected in advertising, investment and expectation of favourable demand. Sentiment was nevertheless curbed by concerns around inflation and competitive pressures, S&P Global noted in the report.</p><p>There was positive news on the job front. Manufacturing employment increased for the tenth month in a row. The rate of job creation quickened to the fastest in four months in December. Around one-in-ten companies recruited extra staff, while fewer than 2% of firms shed jobs during the month under review.</p><p>There was a sharper increase in selling price than cost burdens. “The rise in input prices eased slightly, wrapping up the year when Indian manufacturers felt the strain of sharp cost pressures,” Lam said.</p>
<p>New Delhi: India’s manufacturing sector growth slipped to 12-month low in December, dragged by weak demand as rate of expansion in new orders dipped to the lowest in a year, as per an industry survey report released by S&P Global on Thursday.</p><p>Purchasing Managers’ Index (PMI) for manufacturing declined to 56.4 in December from 56.5 in the previous month.</p><p>“December data showed the sector improving to the least extent in 2024, amid softer increases in output, new orders and stocks of purchases,” S&P Global said in its monthly report.</p>.Core sector output growth rises to 4-month high in November.<p>Despite the decline, December PMI remained above its long-run average of 54.1. The PMI print above 50 indicates growth in the sector while below 50 shows contraction.</p><p>“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 at HSBC.</p><p>“The rate of expansion in new orders was the slowest in the year, suggesting weaker growth in future production. That said, there was some uplift in the growth of new export orders, which rose at the fastest pace since July,” Lam added.</p>.<p>In December, 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.</p><p>Looking into 2025, Indian manufacturers were confident of a rise in output. Optimism reflected in advertising, investment and expectation of favourable demand. Sentiment was nevertheless curbed by concerns around inflation and competitive pressures, S&P Global noted in the report.</p><p>There was positive news on the job front. Manufacturing employment increased for the tenth month in a row. The rate of job creation quickened to the fastest in four months in December. Around one-in-ten companies recruited extra staff, while fewer than 2% of firms shed jobs during the month under review.</p><p>There was a sharper increase in selling price than cost burdens. “The rise in input prices eased slightly, wrapping up the year when Indian manufacturers felt the strain of sharp cost pressures,” Lam said.</p>