Bengaluru: construction area A private survey showed that December ended 2021 at a solid level with growth in new orders and output despite losing some momentum, but higher price pressures were still a concern.
production Purchasing Managers’ Index, compiled and aggregated by IHS Market December 6-17 fell from 57.6 in November to 55.5 in December, although it remained above the 50 mark that separates growth from contraction for the sixth month.
The survey results reinforce evidence of a sustained recovery in Asia’s third-largest economy from the slowdown induced by the coronavirus pandemic. This and rising price pressures may raise expectations, the Reserve Bank of India, like some other central banks, will tighten monetary policy already.
“The last SME The 2021 results were encouraging for the Indian manufacturing sector, with the economic recovery continuing as companies were able to secure new jobs from domestic and international sources.”
“Higher sales curtailed further growth in production and companies stepped up their recharge efforts.”
While the latest survey showed that the new orders sub-index, a proxy for domestic demand, slipped to 58.4 in December, it remained above the long-term average since the gauge was introduced in March 2005. This encouraged firms to maintain solid production.
Optimism about future production strengthened last month, but concerns about supply-chain disruptions, the rapid spread of new omicron The type of coronavirus and inflationary pressures influenced sentiment.
employment Slipped back into contraction territory last month after rising in November for the first time since July; However, the pace of job losses was modest.
Although input costs increased at a faster upward trend, output price inflation fell to a 14-month low as firms did not fully pass on the burden to consumers.
“There were tentative indications that inflationary pressures were beginning to ease, but companies were not particularly confident that such a trend would continue,” De Lima said.
“Despite the easing in December, input cost inflation was still operating at one of its highest rates in nearly seven-and-a-half years. Yet most firms decided to keep their selling prices unchanged to boost sales, Also there has been a marginal increase in the overall fee in December.”
production Purchasing Managers’ Index, compiled and aggregated by IHS Market December 6-17 fell from 57.6 in November to 55.5 in December, although it remained above the 50 mark that separates growth from contraction for the sixth month.
The survey results reinforce evidence of a sustained recovery in Asia’s third-largest economy from the slowdown induced by the coronavirus pandemic. This and rising price pressures may raise expectations, the Reserve Bank of India, like some other central banks, will tighten monetary policy already.
“The last SME The 2021 results were encouraging for the Indian manufacturing sector, with the economic recovery continuing as companies were able to secure new jobs from domestic and international sources.”
“Higher sales curtailed further growth in production and companies stepped up their recharge efforts.”
While the latest survey showed that the new orders sub-index, a proxy for domestic demand, slipped to 58.4 in December, it remained above the long-term average since the gauge was introduced in March 2005. This encouraged firms to maintain solid production.
Optimism about future production strengthened last month, but concerns about supply-chain disruptions, the rapid spread of new omicron The type of coronavirus and inflationary pressures influenced sentiment.
employment Slipped back into contraction territory last month after rising in November for the first time since July; However, the pace of job losses was modest.
Although input costs increased at a faster upward trend, output price inflation fell to a 14-month low as firms did not fully pass on the burden to consumers.
“There were tentative indications that inflationary pressures were beginning to ease, but companies were not particularly confident that such a trend would continue,” De Lima said.
“Despite the easing in December, input cost inflation was still operating at one of its highest rates in nearly seven-and-a-half years. Yet most firms decided to keep their selling prices unchanged to boost sales, Also there has been a marginal increase in the overall fee in December.”
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