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India Manufacturing Slows to 2-Year Low in December
2 Jan
Summary
- Manufacturing PMI fell to 55 in December, the lowest in 24 months.
- Output and new orders saw the slowest growth rates in months.
- Job creation also hit its slowest pace in 22 months.
India's manufacturing activity witnessed its slowest expansion in two years during December, as indicated by the HSBC India Manufacturing PMI compiled by S&P Global. The index fell to 55 in December from 56.6 in November, marking the weakest growth since December 2023. This deceleration was primarily attributed to subdued output and a cooling in new orders.
The slowdown in overall sales was mirrored in international orders, which grew at their slowest rate in 14 months. Input costs and final product prices also saw negligible increases, with product prices rising at the slowest pace in nine months. This eased inflationary pressures, though it coincided with reduced momentum in the sector.
Job creation within the manufacturing sector also experienced a notable slowdown, rising at its slowest pace in 22 months. Despite these trends, the manufacturing PMI has remained in expansion territory for 50 consecutive months, suggesting resilience in the industry as it concluded 2025.
