India’s Economic Growth Slows in December: Manufacturing and Services Sectors Show Muted Expansion
India’s economic expansion experienced a deceleration in December, with both the manufacturing and service sectors exhibiting slower growth rates compared to the previous month. While remaining in expansionary territory, the latest data signals a cooling trend in the nation’s economic momentum.
Key Findings:
* Composite Output Index: The HSBC Flash India Composite Output Index, which gauges the combined performance of the manufacturing and service sectors, fell to 58.9 in December, down from 59.7 in November. This marks the slowest pace of growth since February HSBC.
* Manufacturing PMI: the HSBC Manufacturing Purchasing Managers’ Index (PMI) also decreased to 55.0 in December, a decline from 56.6 in November, but still indicating expansion S&P global.
* Sectoral Trends: both manufacturing and service sectors experienced “muted growth in business activity,” suggesting a broad-based slowdown.
* Expansionary Territory: It’s significant to note that both indexes remain above the 50-point threshold, which signifies economic expansion. A reading above 50 indicates growth, while a reading below 50 suggests contraction.
Expert Analysis:
Pollyanna De Lima, Economics Associate Director at S&P Global Market intelligence, noted that despite the easing momentum, India’s manufacturing industry concluded 2023 in a relatively strong position.She highlighted that a substantial increase in new business orders should sustain company activity in the final fiscal quarter, and the absence of significant inflationary pressures could continue to support demand S&P Global.
understanding PMIs:
Purchasing managers’ Indices (PMIs) are economic indicators derived from monthly surveys of private sector companies. They provide an early indication of economic conditions in the manufacturing and service sectors. Businesses are asked about various factors, including new orders, output, employment, supplier deliveries, and prices.
Optimal Keywords:
* Primary Topic: India Economic growth
* Primary Keyword: India PMI
* Secondary Keywords: India Manufacturing, India Services, Economic Slowdown, HSBC PMI, S&P Global, Composite Output Index, Purchasing Managers’ Index, Indian Economy, Economic Expansion, Business Activity.
Sources:
* HSBC
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