Kolkata: About 10% of Indian firms made fresh hirings in December, which signalled optimism in this crucial labour-intensive sector. According to reports, inventories of finished goods underwent the sharpest decline in 7 months. Naturally, it signalled robust sales activity.
As a result, India’s vital manufacturing sector indicated resilience in December 2024, with employment rising for the 10th month on the trot. For those statistically minded, job creation reached its peak in 4 months, as shown by HSBC India Manufacturing Purchasing Managers’ Index (PMI).
“Soft ending to a strong year”
However, the PMI figures, reports said, marked a soft end to the calendar year of 2024 India’s manufacturing sector ended 2024 on a softer note as the December PMI crept down to 56.4, which happened to be the lowest reading of the year. The November’s figure was 56.5, showed HSBC data. Incidentally, the long-term average of PMI is 54.1.
“India’s manufacturing activity ended a strong 2024 with a soft note amidst more signs of a slowing trend, albeit moderate, in the industrial sector. The rate of expansion in new orders was the slowest in the year, suggesting weaker growth in future production…. That said, there was some uplift in the growth of new export orders, which rose at the fastest pace since July. The rise in input prices eased slightly, wrapping up the year when Indian manufacturers felt the strain of sharp cost pressures,” Ines Lam, economist of HSBC was quoted in the media as saying.
According to reports, output in factories and new orders grew but at a slower rate. It was believed to be an indication of rising competition and pressure on the price front. Nevertheless, companies observed that positive client sentiment along with the muscle of advertising kept supporting sales. One of bright spots was export orders – growth in international demand went up at the fastest clip since July 2024. It helped compensate for slightly weak domestic demand. December fortunately also marked softening of cost pressures. Inflation moderated a bit.
December 2024 was marked by resilience in the Indian manufacturing sector. Inventory of finished goods went down too marking robust sales activity. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
