Manufacturing PMI Shows Steady Growth Despite Slower Momentum

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Source:HSBC & SP

Robust demand drove increases in sales, output, and production, though rising costs and competition constrained gains.

December 2024 : The HSBC India Manufacturing PMI® fell to 56.5 in November, an 11-month low from 57.5 in October, indicating slower but above-average sector growth. Robust demand drove increases in sales, output, and production, though rising costs and competition constrained gains.

Selling prices saw their steepest rise since October 2013 due to higher freight, labor, and material costs. Input cost inflation reached its highest since July, with price hikes reported for chemicals, cotton, leather, and rubber. Export demand grew at a four-month high, with key gains from countries like Bangladesh, mainland China, Colombia, Iran, Italy, Japan, Nepal, the UK and the US.

Employment expanded for the ninth consecutive month, though at a slower pace than October. Input purchases rose sharply, albeit at the slowest rate in nearly a year, while vendor performance improved mildly. Input stocks grew above the long-run average, though finished goods inventories ended their decline since August 2017.