India’s manufacturing sector recorded its weakest expansion in nearly two years in December, weighed down by a softer rise in new orders, which led companies to curb input purchases and hiring, a monthly survey showed on Friday.
The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index (PMI) declined to 55 in December from 56.6 in November, reflecting a moderation in the pace of growth.
In PMI terms, a reading above 50 indicates expansion, while a sub-50 print signals contraction. Despite remaining in expansionary territory, the latest data points to a cooling momentum in manufacturing activity toward the end of the year.