The PMI survey said that international demand for Indian goods increased in December.
India’s manufacturing PMI in December: The manufacturing activity of the country registered a strong trend in the month of December, due to faster production and input purchases from the manufacturers. This information was found in a monthly survey released on Monday. After several months of business being closed for the last year, now manufacturers are trying to restore their stock. That is why they are speeding up production and input purchases. IHS Market on Monday released the India Manufacturing Purchasing Management Index (PMI). It stood at 56.4 for December 2020, slightly above 56.3 in November 2020. This is the fifth consecutive month when the manufacturing PMI is above 50. If the PMI is more than 50, then it shows the speed of activities. A PMI below 50 indicates a lethargy.
Pauliana de Lima, assistant director of economics at IHS Market, said, “The recent PMI in the Indian manufacturing sector shows that the economy is improving.” Production has accelerated due to the demand-supporting environment and the efforts of companies to re-create safe reserves. ”He said that the entire manufacturing sector has witnessed improvement in business conditions. He said, “Out of the three subsectors that have been considered, detail has been recorded in both sales and production parameters.”
Demand increased in the world of Indian goods
The survey said that international demand for Indian goods increased in December. However, due to COVID-19, the growth has been adversely affected. As a result, export orders grew at the slowest pace in December during the most recent four months of expansion. Production growth has remained strong, but it has also come down to a four-month low. “In December, it has weakened once again in favor of employment. This has led to this ninth consecutive month of loss of employment.
The survey said, “Companies said that the government’s guidelines to work in shifts and difficulties in finding suitable workers are the main reasons for the loss in terms of employment. However, the pace of decline has slowed down and it is the lowest in the current order of decline. “In terms of prices, according to the survey, inflation in input costs reached a 26-month high in December.
Increased input cost also increases output value
Parties surveyed believe that the prices of chemicals, metals, plastics and clothing have increased. The output price has also increased due to rising input costs. However, the increase in output price has been modest. Lima said that when we mix the data for the recent three months, we find that the performance of the manufacturing sector in the third quarter has been better than the second quarter. The three-month average PMI has risen from 51.6 to 57.2. He said that the perception of Indian manufacturers about the increase in output in the coming years remains intact. However, this optimism is at a four-month low, as some companies are concerned about the long-term impact of the COVID-19 epidemic on the global economy.