Mumbai: The HSBC Purchasing Managers’ Index (PMI), a snapshot of the country’s manufacturing sector activity in December, the last month of 2024, fell to a 12-month low of 56.40. According to the survey report prepared by HSBC, PMI in November was 56.50. Manufacturing sector activity remained slow for the second consecutive month in December. December PMI was the lowest since January 2024 at 54.90.
Manufacturing PMI for the full year of 2024 averaged 57.50, up from 56.80 in 2023.
An index above 50 is called expansion of that area. Thus, overall activity remains strong in 2024, an HSBC economist said in the report.
The pace of new orders domestically was sluggish for a year, but the situation on the export front has been positive. Export orders remained high after July.
Manufacturers are relieved to see a decline in raw material inflation in December compared to November. The report said elasticity of demand continues to support pricing.
One in ten companies hired additional employees, while less than two percent of all participating companies laid off employees.
Nearly 400 companies participated in the survey.
Inflation declined in November compared to October, but companies are worried about increasing competition and higher inflation.
India’s economic growth in the September quarter was at a seven-quarter low of 5.40 percent. The outlook for India’s manufacturing sector does not look good as the manufacturing PMI declined for the second consecutive month in December.
