India’s manufacturing sector registered the fastest growth in output in 13 months. File (Image for representation purpose only) | Photo Credit: Reuters
India’s manufacturing sector posted the fastest growth in output in 13 months in December 2022, with new orders rising at the fastest pace since February 2021, even as selling prices rose more than input costs for the first time in two-and-a-half years. S&P Global India Manufacturing Purchasing Managers’ Index (PMI).
The seasonally-adjusted PMI reading for December 2022 rises to 57.8 from 55.7 in November, indicating what the firm called ‘a strong improvement in the health of the sector, the best seen since October 2020’. The PMI averaged 56.3 for the October to December quarter, the highest in a year. A reading of 50 on the PMI indicates no change in business activity levels.
Firms continued to hire more workers for the tenth month in a row, boosting production levels in December but jobs growth was the slowest since September. S&P Global’s industry responses to the survey-based index suggest that overall demand is strong and resilient, with producers also increasing input purchases at a ‘near-record’ pace, which is ‘faster to history and strongest since May 2022′ Was’.
Slow growth for new orders from overseas
However, a deep slowdown in major global destinations for Indian products began to dent new orders from overseas, which grew at their slowest pace in five months, as many companies reportedly struggled to secure new work from key export markets. Was fighting for.
“Some may question the resilience of the Indian manufacturing industry in 2023 amid a worsening outlook for the global economy, but manufacturers are confident of their ability to increase production from current levels,” said Pollyanna De Lima, associate director of economics at S&P Global Markets. I had confidence.” intelligence.
“Demand strength took center stage among the reasons provided by firms for the improvement in several measures, while less challenging supply-chain conditions also supported the uptick,” Ms de Lima said.