Dec manufacturing at 18-month low as output, orders cool

The pace of growth in India's manufacturing activity fell to an 18-month low in December as output growth and new orders softened, a private survey said on Wednesday.

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According to the HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, India's manufacturing PMI fell to 54.9 in December from 56 in November and 55.5 in October.

The December value is the lowest since October 2022, when the reading came in at 55.3. PMI above 50 indicates expansion, and below 50 contraction.

"Growth was reportedly curbed by fading demand for certain types of products," the survey said, adding that while new orders placed with Indian manufacturers rose sharply, the pace was still slower in December compared to previous months.

"Growth of both output and new orders softened, but on the other hand, the future output index rose since November. Rates of increase in input and output prices were broadly unchanged," Pranjul Bhandari, chief India economist at HSBC Securities and Capital Markets, said.