India: Private-sector PMI moderates in December
January 5, 2022
The composite Purchasing Managers’ Index (PMI) produced by IHS Markit dipped to 56.4 in December from 59.2 in November. Consequently, the PMI moved closer to the 50-threshold, indicating a slower expansion in business activity from the previous month.
The services PMI decreased from 58.1 in November to 55.5 in December, as weaker foreign demand weighed on growth in new orders and output. Moreover, on the manufacturing side, the PMI slipped to 55.5 in December from November’s 57.6 due to slower expansions in output and new orders, while headcounts fell modestly.
Commenting on the latest PMI data, Pollyanna De Lima, economics associate director at IHS Markit, said:
“Uncertainty surrounding the outlook, and a general lack of pressure on capacity, led to a renewed fall in employment during December. That said, the decline was marginal and a recovery is expected this year should demand for services remain favorable.”
Author: Steven Burke, Economist