Indian manufacturing activity fell in the month of January, but stayed above the 50 mark that separates growth from contraction. As per the survey report, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) - a composite single-figure indicator of manufacturing performance - eased to 54.0 in January from 55.5 in December.
The report further noted that companies scaled up production in January, amid reports of robust gains in new business. The upturn was marked in the context of historical data, despite easing to the slowest since September 2021. Growth was reportedly stymied by raw material scarcity, inflationary pressures and the intensification of the pandemic.
Similarly, factory orders rose at the slowest rate in four months but one that outpaced its long-run average. International sales likewise increased at a weaker pace. Tamed business optimism contributed to another monthly decline in manufacturing jobs. The fall was modest, but quickened from December. Several companies indicated that workforce numbers were sufficient to cope with current production requirements.
On the price front, there was a further substantial increase in input costs facing goods producers. The overall rate of inflation eased to a four-month low, but remained above its long-run average. Output charges were raised at a quicker rate than in December, albeit one that was moderate overall.
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