India’s Manufacturing PMI Falls Short of Expectations

India’s HSBC Manufacturing PMI for December 2024 came in at 56.4, missing the expected 57.4 and falling slightly below November’s reading of 56.5. This indicates a slowdown in manufacturing activity as the year ended.

Year Ends with Manufacturing Activity at a 12-Month Low

The December reading of 56.4 marks the lowest level of manufacturing activity in 2024. Despite the decline, the PMI remains in expansion territory, signaling that the sector is still growing but at a slower pace.

Weaker Growth Despite Easing Cost Pressures

The slowdown in December reflects weaker improvements in production and new orders. While international demand helped support export growth, domestic business sentiment softened. Companies reported easing cost pressures, but this was not enough to boost overall momentum.

Job Growth Stays Strong, but Outlook Dims

Despite the weaker PMI, job creation in the manufacturing sector remained robust. However, concerns about future growth weighed on business confidence, signaling caution among manufacturers heading into the new year.