Employment in Indian manufacturing sector up for 10th month in a row
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.
The Manufacturing Purchasing Managers’ Index (PMI) fell to 56.4, down from 56.5 in November showcasing manufacturing activity’s weakest growth of 2024 in December.
According to the HSBC Final India Manufacturing PMI, compiled by S&P Global, the headline figure was down from 56.5 in November, but remained above its long-run average of 54.1 thereby signalling a robust rate of growth.
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Both output and new orders continued to rise last month but the improvement slowed. The data indicated softer demand in the sector despite easing cost pressures and strong jobs growth.
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Manufacturing PMI declined to a joint 11-month low of 56.5 in November, down from 57.5 in October, indicating a slowdown in manufacturing growth. Despite this deceleration, the PMI remained above the 50-mark, signifying continued expansion in the manufacturing sector.
On the employment front, the rate of job creation quickened to the fastest in four months. Around one-in-ten companies recruited extra staff, while fewer than 2 per cent of firms shed jobs.
Notably, India’s GDP growth slowed to 5.4 per cent in the second quarter of FY25, marking its weakest performance in nearly two years.
The Reserve Bank of India (RBI) has also revised its annual growth forecast to 6.6 per cent from 7.2 per cent, signaling caution over economic momentum.
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