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.

Also read: Gold shines after three consecutive days of decline, know the latest price of your city today on January 2

India Private Sector Economy: The activities of India’s private sector have reached a new record level in August. HSBC Flash India Composite PMI output index reached 65.2 due to the rise in orders. At the same time, PMI of the service sector has been recorded at 65.5, which has reached this level for the first time since the start of this index since December 2005 and has also surpassed manufacturing growth. Composite PMI was 61.1 in July while in August 2024 it was recorded 60.7.

Service sector leads

The growth of the service sector was at the top. India’s HSBC Chief Economist Pranjul Bhandari said that due to new business orders at both domestic and export levels, the PMI of the service sector has reached all time high.

Manufacturing sector also strong

At the same time, the manufacturing sector was also seen to be strong. Manufacturing PMI increased to 59.8 in August, which was 59.1 in July. This is the strongest performance of the manufacturing sector since January 2008. Pranjul Bhandari says that due to the rise in domestic demand, manufacturing PMI is close to touching the level of 60.

Although there has not been a big change in export orders compared to July, the most demand has been seen at the international level since 2014. Orders have increased especially from Asia, West Asia, Europe and America.

Also read: Indian stock market crashed due to these reasons, 2 lakh crore rupees of investors in a short time

India’s manufacturing PMI: Despite global uncertainties, there has been a significant increase in India’s manufacturing sector in July. The PMI index remained over 58 for the second consecutive month. The figure was 58.4 in June, which increased to 59.1 in July- this is the highest level of the last 16 months.
Manufacturing sector boom

Seasonally adjusted HSBC India Manufacturing Purchase Manager Index (PMI) increased from 58.4 of June to 59.1 in July. This is a sign of the strongest improvement in the region since March 2024. The PMI extending above 50 of the index indicates expansion in production activities, while the figure below 50 indicates contractions.

Key points in HSBC report

HSBC Chief Indian Economist Pranjul Bhandari said that the manufacturing sector growth in July was at 59.1, which is more than 58.4 in June. This increase became possible due to new orders and strong increase in production.

Sale and production at record level

According to the survey, the total sales increased at the fastest speed in about 5 years. As a result, manufacturing growth reached a 15 -month high. The survey also stated that Indian manufacturers are convinced about the increase in production in the next 12 months. However, the overall positive spirit has come to its low level in the last three years.

Pressure on cost and prices

According to the survey, the cost of raw materials increased rapidly in July. The prices of items such as aluminum, leather, rubber and steel increased, causing the cost pressure to increase. Due to the high demand situation, companies have also increased the prices of their products. The SBC India Manufacturing PMI is prepared by S&P Global based on the answers to the questions sent between about 400 manufacturing companies.

Also read: From UPI and LPG to SBI Card … These rules have changed from today, know what will be the effect on you

Manufacturing PMI Declines: A survey conducted by the private sector has revealed that the manufacturing activity of the country has gone to the lowest level of the last three months and has come to the level of 57.6. The tariff was announced on 2 April by US President Donald Trump. After this, HSBC India Manufacturing Purchasing Manager Index declined for the first time in the month of May.

In this regard, HSBCIndia Chief Economist Pranjul Bhandari says that India’s manufacturing PMI was strengthened in the month of May. But the increase in production and new orders was less than last month.

Manufacturing PMI declines

Talking about May, the PMI figure of that month is less than the initial data of 58.3. Statistics of the service sector will be released on June 4. The Indian economy has performed well during January to March. RBI has set a target of growth in the current financial year by 6.5 percent.

If the score under PMI remains above 50, then it is believed to expand the production, but if it remains below it, then the production is believed to be a decline. Due to India’s high growth rate, RBI has estimated the country’s GDP growth 6.5 percent during the current financial year. During the fourth quarter, the GDP growth of the country also jumped from 6.2 percent to 7.4 percent. This Economic Grow is according to an estimate of FY 2025.

Economy’s speed will remain

Earlier, the RBI said in its estimate that the country’s GDP may remain 6.5 per cent in Quarter-1, 6.7 percent during Quarter-2, 6.6 percent during Quarter-3, and 6.3% during Quarter-4. RBI Governor Sanjay Malhotra had said that this estimate is based on current data and balanced risk. He had said that Indian economy is on the path of growth. But one cannot remain untouched by the issue of global business.

Also read: People made fierce digital payments, break records in May, know how many crores were done UPI transactions