Purchase managers' index shows higher manufacturing activity in India for December

New export orders were rising at a sluggish pace since global headwinds slowed down demand from overseas markets.

FPJ Web DeskUpdated: Monday, January 02, 2023, 06:08 PM IST
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Daifuku Group

Apart from products flying off shelves and being booked online, the goods being rolled out on the production lines in factories also indicate the health of an economy. This is where the purchase managers' index (PMI) comes in handy, to gauge the supply of products, which can also give insights on demand as well as purchasing power. For the month of December, the manufacturing PMI hit the highest level in 13 months, driven by strong demand and a steady growth of new business.

According to S&P Global India's data, the manufacturing PMI of the country for December hit 57.8, a three point uptick from the previous month, with the best business growth clocked in two years. The update shows that overall operating conditions improved for for the 18th month in a row as PMI above 50 means indicates an expansion.

Firms also moved to increase production for bulking up inventories, as sales grew in December thanks to a resilient demand from consumers.

Advertising, diverse product portfolios and improving economic conditions helped scale up manufacturing activity in India. At the same time new export orders were rising at a sluggish pace since global headwinds slowed down demand from overseas markets.

The impact of higher cost on prices was lower in the final month of 2022, and inflation slowed down significantly.

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