By Admin 
Demember Manufacturing PMI Slows: This news is considered to be a matter of concern in terms of the country’s economic growth. Even though the activities in the manufacturing sector remained expansionary in the month of December, their pace seemed to be slower than before. According to the latest data, the HSBC Manufacturing Purchasing Managers’ Index (PMI) declined to 55.0 in December, whereas in November it was at the level of 56.6.
Manufacturing speed decreased
Data released by S&P Global show that production, new orders and export demand continued to increase, but there was a clear slowdown in their pace. Similarly, the pace of activities in the service sector has also been affected, due to which questions are being raised on the overall strength of economic activities.
Experts believe that the growth speed of industries has been affected due to reasons like global uncertainty, weak external demand and input cost pressure, however, PMI being above 50 indicates that the economy is still on the path of expansion.
What is the scale of strong position?
However, PMI remaining above 50 indicates that activity in the respective sector remains in the expansion zone and is seen as strong growth. This means that production, new orders and employment opportunities are increasing in activities like manufacturing or construction.
At the same time, if the PMI level goes below 50, it indicates a situation of contraction or consolidation in the manufacturing or construction sector, that is, activities are slowing down. Whereas PMI remaining around 50 indicates that no major changes are taking place in the economy and activities are in a stable state.
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