Mfg slows amid global challenges

While the Indian stock market scaled new peaks in December, activity in the manufacturing sector has W lost momentum.

The HSBC Purchasing Managers' Index (PMI) came in at an 18-month low of 54.9 in December, down from 56 in November. A reading of above 50 indicates an expansion and below 50 a contraction.

The latest print was above the long-term trend, but marked the lowest quarterly average (55.5) since Q1IFY23, said the PMI survey report. A combination of unfavourable factors played spoilsport for manufacturers. The pace of increase in new orders was the slowest in a year and a half. Even as international orders continued to rise for the 21st consecutive month, new export sales and output were muted.

But elsewhere, the scenario was even less inspiring. The headline PMI for global and Asean contracted in December, or was below 50. Operating conditions in the Asean deteriorated on subdued new orders. Inflows of new work fell for the fourth consecutive month, weighing on production growth. Data showed that four out of the seven monitored Asean nations saw weaker manufacturing conditions.