2024.01.0305:46:00UTC+00India's Manufacturing Growth Slowest In 18 Months

India's manufacturing growth remained strong in December despite easing to the weakest level in one-and-a-half years amid slower expansion in new orders and output, survey results from S&P Global showed on Wednesday.

The seasonally adjusted HSBC Manufacturing Purchasing Managers' Index posted 54.9 in December, down from 56.0 in November.

However, a score above 50.0 indicates expansion. The reading was forecast to fall slightly to 55.9.

Factory orders and output grew strongly, though at a slower pace, in December. Output growth softened to the weakest since October 2022, linked to fading demand for certain types of products.

The overall increase in production was attributed to new business gains, favourable market conditions, fairs, and expositions, the survey said.

New orders rose at the slowest pace in eighteen months, and foreign orders grew at a moderate pace. Export demand was more evident from clients in Asia, Europe, the Middle East, and North America.

Manufacturing employment was largely stable in December, and there was a general lack of pressure on the capacity of manufacturers at the end of the third fiscal quarter.

On the price front, input costs signalled a further increase amid higher costs for chemicals, paper, and textiles, while the rate of charge inflation surpassed that of input prices.

Indian firms expressed the highest level of optimism for three months while evaluating the output outlook for the upcoming year.