ENA Sectors 2024-01-03 16:39:10 <p><span style="font-size:14px"><strong>New Delhi, Jan 3 (KNN)</strong> India witnessed a notable dip in manufacturing activity, reaching an 18-month low in December, as reported by a private survey on Wednesday.</span></p> <p><span style="font-size:14px">The HSBC India Manufacturing Purchasing Managers' Index (PMI), compiled by S&amp;P Global, revealed a decline from 56 in November to 54.9 in December, following the October figure of 55.5.</span></p> <p><span style="font-size:14px">This downturn marks the slowest expansion since February.</span></p> <p><span style="font-size:14px">A crucial economic indicator, the PMI reading above 50 signifies expansion, while below 50 indicates contraction.</span></p> <p><span style="font-size:14px">Despite robust growth reported earlier, with the Indian economy growing at an impressive 7.6 per cent in the second quarter, the recent survey of 400 manufacturers paints a contrasting picture.</span></p> <p><span style="font-size:14px">The manufacturing sector, however, demonstrated resilience in December, expanding despite a slowdown in growth momentum.</span></p> <p><span style="font-size:14px">The report noted softer, yet sharp, increases in factory orders and output, with a surge in business confidence regarding the year-ahead outlook.</span></p> <p><span style="font-size:14px">Challenges to India's economic landscape emerged from a global slowdown, also affecting merchandise exports.</span></p> <p><span style="font-size:14px">Additionally, interest rate tightening, driven by persistent inflation in advanced economies, contributed to a broader slowdown in business, investment, and trade.</span></p> <p><span style="font-size:14px">Geopolitical conflicts in Ukraine and West Asia posed threats of pushing up commodity prices, intensifying inflationary pressures.</span></p> <p><span style="font-size:14px">The latest data on India's Consumer Price Index (CPI) inflation revealed a rise to 5.55 per cent in November, compared to 4.87 per cent in October and 5.02 per cent in September.</span></p> <p><span style="font-size:14px">While this figure exceeded the Reserve Bank of India's (RBI) 4 per cent target, it remained within the central bank's tolerance range of 2-6 per cent for the third consecutive month, offering some stability amid economic fluctuations.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 36130 https://knnindia.co.in/news/newsdetails/sectors/indias-manufacturing-activity-hits-18-month-low-in-december-hsbc-pmi 2024-01-03 16:39:10 knnindia.co.in