India’s manufacturing sector remained in expansion territory in December but grew at its slowest pace in over three years, with the HSBC Manufacturing Purchasing Managers’ Index (PMI) easing to 55.0 from 56.6 in November, a 38-month low, according to S&P Global.
Although momentum softened, the PMI stayed well above the 50 mark that separates growth from contraction. New business orders continued to rise strongly, supported by steady domestic demand, though at the weakest pace since December 2023. Factory output also expanded but slowed to its lowest rate since October 2022, prompting firms to adopt a cautious approach to raw material purchases. Export order growth weakened, hitting a 14-month low, despite demand from Asia, Europe, and the Middle East. S&P Global noted that strong order inflows and subdued inflationary pressures helped the sector end the year on a relatively solid footing.
