India Manufacturing Activity Logs Softest Expansion In 2024

(RTTNews) - India's manufacturing sector growth remained strong at the end of the year, but at the weakest pace in 2024 amid slower increases in output, new orders, and stocks of purchases, data compiled by S&P Global showed on Thursday.

The HSBC final manufacturing Purchasing Managers' Index dropped slightly to 56.4 in December from 56.5 in November. The flash reading was 57.4. Nonetheless, a score above 50.0 indicates expansion.

Output grew at a substantial pace that was, however, the weakest this year. The overall growth trend was on the back of favorable demand.

Similarly, the rate of increase in new orders was the slowest in the year. Nevertheless, the pace of growth for the new export orders was the fastest in five months as firms were able to secure international orders from across the globe.

On the price front, input price pressures eased slightly, while selling price inflation remained historically high in December.

Manufacturing employment marked the quickest rise in four months, while a renewed decline was seen in post-production inventories.

Looking ahead, manufacturers remained confident about output expectations in 2025 despite concerns around inflation and competitive pressures.