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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India services PMI: India’s service sector has demonstrated a record -breaking demonstration in August and its speed has reached a 15 -year highest level. This bounce was mainly possible due to a rapid increase in new orders and production. The HSBC India Services Purchasing Manager Index (PMI) data released in a private survey conducted by S&P Global.

According to the report, seasonally adjusted HSBC India Seva PMI rose from 60.5 in July to 62.9 in August. This is the fastest speed of expansion since June 2010. The survey states that significant improvement in demand and strengthening of new orders brought out the activities of services to a high level of 15 years.

Strength in demand and order

More than 50 points on the scale of PMI means that business activities are expanding, while less than 50 points indicate contractions. Reaching PMI 62.9 in August shows that the service sector is expanding very fast.

According to HSBC India Chief Economist Pranjul Bhandari, “The growth rate of services is at a 15 -year high and the increase in the new order has strengthened it.” However, he also added that the inflation rate on the price front has reached a 9 -month high, due to which inflation also remains pressure.

Composite PMI jump

Meanwhile, the joint index of both services and manufacturing composite PMI also increased from 61.1 in July to 63.2 in August. This is the fastest growth of 17 years. This means that not only services but also the manufacturing sector in India is performing strong and the two together are taking overall economic activities to a new height.

The index has been prepared by S&P Global on the basis of survey of about 400 service sector companies and is given weightage in the ratio of India’s GDP (GDP).

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