New Delhi, Jan 3 Not only did employment in the Indian manufacturing sector increase for the 10th month in a row during December, but also the rate of job creation quickened to the fastest in four months, according to a new report.
Around one-in-10 companies recruited extra staff, while fewer than 2 per cent of firms shed jobs in 2024, according to the ‘HSBC India Manufacturing PMI’ report.
“Ongoing improvements in new work intakes prompted manufacturing companies in India to purchase additional inputs for use in production processes. The rate of growth remained above its trend,” the report noted.
India’s manufacturing activity ended a strong 2024 with a soft note amid more signs of a slowing trend, albeit moderate, in the industrial sector.
There was some uplift in the growth of new export orders, which rose at the fastest pace since July, said Ines Lam, economist at HSBC.
The rise in input prices eased slightly, wrapping up the year when Indian manufacturers felt the strain of sharp cost pressures, Lam added.
“Although new export sales rose at a slower rate than total new business, the pace of growth for the former strengthened as firms were able to secure international orders from across the globe,” according to the report.
Capacity pressures among Indian manufacturers remained mild, as seen by another marginal increase in work either pending completion or not-yet-started.
Looking to 2025, Indian manufacturers were confident of a rise in output.
Optimism reflected advertising, investment and expectation of favourable demand. Sentiment was nevertheless curbed by concerns around inflation and competitive pressures.
“With regards to input inventories, purchasing growth and shorter lead times underpinned another monthly increase,” the report mentioned.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor