India's manufacturing PMI at 18-month low this December
India's manufacturing sector experienced growth in December, as the Purchasing Managers' Index (PMI) reached 54.9, although this was an 18-month low. Despite the drop from November's 56.0, the PMI stayed above the crucial 50-mark, signifying expansion for the 30th month in a row. S&P Global, responsible for compiling the index, said that the December PMI figure showed "a marked improvement in the health of the sector."
Slowest pace of new orders in over a year
New orders increased at their slowest rate in a year-and-a-half in December. This resulted in the lowest manufacturing output growth since October 2022 due to "fading demand for certain types of products." However, international orders kept rising for the 21st consecutive month, with new export sales expanding at their slowest pace in eight months. S&P Global observed a "general lack of pressure on the capacity of manufacturers," leading to stable employment levels.
Manufacturers' costs inflation at second-weakest level in over three years
In December, manufacturers' cost inflation was at its second-lowest point in almost three-and-a-half years. Prices charged by manufacturers increased more than input costs for the fourth month in a row. "Survey participants that hiked their fees in December mentioned the pass-through of recently absorbed cost burdens to clients," the survey report stated. Indian manufacturers expressed their most optimistic outlook for production in three months, attributing advertising, new inquiries, and improved customer relations, as factors boosting business confidence.
