India's Manufacturing sector holds strong in December despite PMI Dip

  • Industry News
  • Jan 03,24
S&P Global, the compiler of the index, noted that December's PMI reading signifies a substantial improvement in the sector's health. Despite being above the long-term series trend, it contributed to the lowest quarterly average (55.5) since Q1 2022-23.
India's Manufacturing sector holds strong in December despite PMI Dip

India's manufacturing sector maintained its expansion in December, as per data released on January 3, despite the HSBC Purchasing Managers' Index (PMI) hitting an 18-month low of 54.9. Although this figure is below November's 56.0, it remains above the crucial 50 level that distinguishes activity expansion from contraction, marking the 30th consecutive month above this threshold.

S&P Global, the compiler of the index, noted that December's PMI reading signifies a substantial improvement in the sector's health. Despite being above the long-term series trend, it contributed to the lowest quarterly average (55.5) since Q1 2022-23.

The slower pace of new order growth in December, the weakest in a year and a half, impacted manufacturing output growth, reaching its lowest since October 2022 due to diminishing demand for certain products. However, international orders continued their upward trend for the 21st consecutive month, although new export sales grew at their slowest rate in eight months.

S&P Global observed a general lack of pressure on manufacturers' capacity in December, resulting in stable employment levels with a sub-index just marginally above 50.

Looking ahead, Indian manufacturers displayed optimism about the year-ahead production outlook in December, citing factors such as advertising, improved customer relations, and new inquiries as key contributors to boosted business confidence.

On the pricing front, there was positive news, with manufacturers' cost inflation in December at its second-weakest level in nearly three and a half years. Prices charged by manufacturers rose more than input costs for the fourth consecutive month, with survey participants attributing the fee hikes in December to passing on recently absorbed cost burdens to clients, according to the survey report.

Related Stories

Aerospace Defence
Space startups struggle with limited ecosystem, face high component costs

Space startups struggle with limited ecosystem, face high component costs

High tariffs on space-tech solar panels, implemented to curb Chinese imports, further strain startups.

Read more
Policy Regulation
India’s manufacturing PMI rises to 57.5 in October

India’s manufacturing PMI rises to 57.5 in October

About 10% of survey respondents reported increased staffing, while only 1% reduced jobs.

Read more
Policy Regulation
Capital-intensive industries drive employment growth in India: Goldman Sachs

Capital-intensive industries drive employment growth in India: Goldman Sachs

India’s manufacturing transformation is being fuelled by reforms, including the Production-Linked Incentive (PLI) schemes, which have played a pivotal role in increasing domestic production, foste..

Read more

Related Products

Heavy Industrial Ovens

INDUSTRIAL SUPPLIES

Hansa Enterprises offers a wide range of heavy industrial ovens.


Read more

Request a Quote

High Quality Industrial Ovens

INDUSTRIAL SUPPLIES

Hansa Enterprises offers a wide range of high quality industrial ovens. Read more

Request a Quote

Hydro Extractor

INDUSTRIAL SUPPLIES

Guruson International offers a wide range of cone hydro extractor. Read more

Request a Quote

Hi There!

Now get regular updates from IPF Magazine on WhatsApp!

Click on link below, message us with a simple hi, and SAVE our number

You will have subscribed to our Industrial News on Whatsapp! Enjoy

+91 84228 74016

Reach out to us

Call us at +91 8108603000 or

Schedule a Call Back