India's manufacturing growth jumps to 6-month high in Dec: HSBC
The HSBC India Manufacturing Purchasing Managers' Index (PMI) - a measure of factory production - stood at 54.7 in December, up from 53.7 in November, indicating a further improvement in the health of the Indian manufacturing sector.
Output at manufacturing companies in India rose during December, HSBC said, adding that almost one-third of panelists indicated higher production and 18 per cent noted a decline for the period.
"The overall rate of growth was sharp and the fastest in six months in December," HSBC said.
The index has remained above the 50-mark, below which it indicates contraction, for more than three years now.
"Activity in the manufacturing sector picked up again led by faster output growth and a further uptick in new orders, which led to a faster increase in backlogs of work as
companies struggled to keep up with demand," HSBC Chief Economist for India and ASEAN Leif Eskesen said.
The December reading of HSBC PMI points to the fact that the sector has gained momentum in the last few months, after it registered the weakest pace of growth rate in nine months in August.
The growth in new orders also hit a six-month high. New export orders too expanded, and at a solid pace, it said.
Meanwhile, the purchasing activity in the Indian manufacturing sector increased for the forty-fifth consecutive month in December.
Going forward, the output is likely to
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