India's manufacturing sector growth slowed in the month of December but remained above the neutral level of 50.0, amid increases in factory orders and output. A score above 50.0 indicates expansion. According to the report, the seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) eased to 54.9 in December 2023 from 56.0 in November 2023.
The report further noted that new business gains, favourable market conditions, fairs and expositions collectively induced another sharp increase in manufacturing production during December. However, the rate of expansion softened to the weakest since October 2022 even as it remained above its long-run average. Growth was curbed by fading demand for certain types of products.
In a similar vein to the trend for output, new orders placed with Indian manufacturers rose sharply but to a lesser extent in December. The pace of expansion was the slowest seen in a year-and-a-half. Besides, employment was largely stable in December, with the respective seasonally adjusted index registering only fractionally above the 50.0 no-change mark. On the inflation front, input costs rose at the second-slowest rate in nearly three-and-a-half years and charge inflation softened to a nine-month low.
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