Mumbai, January 2 (IANS). India’s manufacturing PMI has declined to 55 in December, which was 56.6 in November. This information was given in a report released on Friday.
The report compiled by S&P Global said that the HSBC India Manufacturing Purchasing Managers’ Index (PMI) is higher than its long-term average and the industry has ended 2025 on a good note.
Whenever PMI is above 50, it shows growth in economic activity. If it is less than this, economic activities are seen to be weak.
New businesses and production are being added due to sustained demand, however, the pace of expansion has slowed due to competitive pressures and declining sales of certain products, the report said.
“Despite slowing growth, India’s manufacturing industry finished 2025 in good shape. Strong growth in new businesses is expected to keep companies busy in the final quarter of the fiscal year and the lack of major inflationary pressures will continue to support demand,” said Pauliana de Lima, Economics Associate Director at S&P Global Market Intelligence.
The jump in purchasing levels was the lowest in the last two years and, as in the last two months, input costs have seen historically negligible increases, the report said. Also, the fee inflation rate has fallen to a nine-month low.
New jobs increased sharply, although it was the lowest since December 2023. Similarly, output levels grew at the slowest pace since October 2022.
Poliana said Indian manufacturers faced less cost pressure than any other country in the world. Many manufacturers hope that competitive prices will help bring in new business from different regions in the new year.
The report cites improved demand from customers in Asia, Europe and the Middle East and expects Indian manufacturers to increase production through 2026.
–IANS
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