India’s manufacturing sector decelerated marginally in December as a slowdown in domestic order flows led to slower output growth, an HSBC survey said today.
The HSBC India Manufacturing Purchasing Managers’ Index (PMI) - a measure of factory production - dropped slightly from 51.3 in November to 50.7 in December.
Despite a slight deceleration, the manufacturing sector activity expanded for the second consecutive month. A PMI reading of above 50 differentiates growth from contraction.
“Today’s numbers show that growth remains moderate and struggles to take off due to lingering structural constraints,” HSBC Chief Economist for India and ASEAN leif Eskesen said.