The manufacturing sector of India ended 2022 in a solid state due to the improvement in business conditions at the fastest rate in over two years.
The data from a business survey claimed that the Indian manufacturing sector is on the right path when it showed that the manufacturing purchasing manager’s index prepared by S&P global, rose to 57.8 in December as compared to 55.7 in November. The December data far exceeded the poll conducted by Reuters which claimed that the median forecast will be 54.3. The December rate was the highest since October 2020.
Even though output and new orders both grew rapidly, exports grew at the slowest rate in five months as a result of sluggish global demand. However, as the rate of job creation slowed to a three-month low, increasing domestic demand had little effect on the labor market’s situation.
The input price inflation remained quiet in December, however, the prices manufacturers charged for their goods rose at the quickest pace since mid-2022
Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence conveys that “Following a promising start to 2022, the Indian manufacturing industry maintained a strong performance as time progressed, wrapping the year with the best expansion in production seen since November 2021. The reasons given by businesses for improvements in many measures were dominated by the strength of demand. As businesses looked to boost production and keep healthy levels of inventories, more supplies were bought and more people were hired. She further added that today’s data made it crystal clear that Asia’s third-largest economy is in a better place in comparison with other emerging economies in spite of the impact of a potential global recession. While some may question the resilience of the Indian manufacturing industry in 2023 amid a deteriorating outlook for the global economy, manufacturers were strongly confident in their ability to lift production from present levels
According to a survey, sales growth was boosted in the month of December due to demand stability, with the rate of increase picking up to the quickest since february 2021
