<p>Despite low inflation, the growth of India’s manufacturing sector reached an 18-month low in December, according to a monthly survey released on Wednesday. This was due to a slower rise in industrial orders and production.</p>
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<p>A weaker, yet substantial, rise in factory orders and production was seen in the HSBC India Manufacturing PMI survey, which was conducted by S&P Global. Additionally, company optimism about the outlook for the next year rose.</p>
<p>The HSBC India Manufacturing Purchasing Managers’ Index (PMI), which is seasonally adjusted, dropped from 56 in November to 54.9 in December, an 18-month low.</p>
<p>According to the Purchasing Managers’ Index (PMI), a score of less than 50 indicates contraction while a print over 50 indicates growth.</p>
<p>S&P Global compiles the HSBC India Manufacturing PMI using purchasing managers’ questionnaire answers in a panel of over 400 firms.</p>
<p>The manufacturing sector in India had a slight slowdown in growth in December, after seeing a surge in the preceding month. The future production index has increased since November, but the growth of both output and new orders has slowed, according to Pranjul Bhandari, Chief India Economist at HSBC.</p>
<p>Even with a slowdown in growth velocity, the industry continued to grow rapidly in December.</p>
<p>According to panelists, favorable market circumstances, new business wins, fairs, and expositions all combined to drive yet another strong rise in industrial output in December.</p>
<p>According to the December figures, Indian goods makers had a 21st consecutive gain in foreign order revenues.</p>
<p>Businesses reported increases in customers in North America, Europe, Asia, and the Middle East. The study found that new export sales increased at a modest rate, which was the joint-slowest in eight months.</p>
<p>Regarding pricing, the rate of increase in input costs was the second-lowest in about three-and-a-half years, and the rate of charge inflation decreased to a nine-month low.</p>
<p>Chemicals, paper, and textiles were among the goods whose prices were reportedly on the rise. The study found that while the rate of inflation was hardly altered from November, it was the second lowest in less than three and a half years and insignificant by historical standards.</p>
<p>Bhandari said, “Rates of increase in input and output prices were broadly unchanged.”</p>
<p>At the conclusion of the third fiscal quarter, HSBC India PMI data indicated that manufacturers’ capacity was generally not under pressure. As a result, jobs were mostly steady in December.</p>
<p>For a period of three months, Indian manufacturers were the most optimistic about the output forecast for the next year. Anecdotal information indicated that the primary drivers of increased company confidence in December were improved customer interactions, advertising, and new inquiries, according to the poll.</p>
