New Delhi: The health of the Indian manufacturing industry improved further in December, with growth of new work and production remaining sharp in spite of losing momentum, according to the latest IHS Markit PMI™ data.
At 55.5 in December, the seasonally adjusted IHS Markit India Manufacturing Purchasing Managers’ Index® (PMI®) pointed to a robust improvement in overall operating conditions that was elevated by historical standards.
This was despite the headline figure slipping from November's ten-month high of 57.6.
Moreover, the latest quarterly reading was at 56.3, its highest since the final quarter of fiscal year 2020/21.
"The last PMI results of 2021 for the Indian manufacturing sector were encouraging, with the economic recovery continuing as firms were successful in securing new work from domestic and international sources. Higher sales underpinned a further upturn in production and companies carried on with their restocking efforts. Manufacturers were optimistic that output would continue to increase in 2022, but business sentiment was somewhat tamed by worries surrounding the path of the pandemic, inflationary pressures and lingering supplychain disruptions," IHS Markit Economics Associate Director Pollyana De Lima said in a press release on Monday.
According to De Lima, there were tentative signs that inflationary pressures started to subside, but companies weren't particularly confident that such trend would continue.
The vast majority of firms decided to keep their selling prices unchanged, in order to boost sales, with overall charges up only marginally in December.