India’s manufacturing activity strengthens in December, 2019 | IHS Markit |

[bhaigan]

New Delhi: India’s manufacturing industry expanded at its fastest rate in ten months in December with a solid rise in factory orders boosting production growth at the end of 2019, a private survey showed on Thursday.

The IHS Markit India Manufacturing PMI rose to 52.7 in December from 51.2 in November, remaining above the 50-mark threshold that separates contraction from expansion.

At the sub-sector level, growth was led by consumer goods, though intermediate goods also made a stronger contribution to the headline figure. Meanwhile, capital goods remained in contraction.

“Factories benefited from a rebound in demand, and responded by scaling up production to the greatest extent since May. There were also renewed increases in input purchasing and employment during December,” said Pollyanna de Lima, Principal Economist at IHS Markit.
 

However, owing to a weak performance in October and November, the average quarterly reading for Q3 FY19/20 was the lowest since the three months to September 2017.

Amid reports of higher prices paid for chemicals, food, metals, paper, plastics and textiles, average cost burdens increased further. Moreover, the overall rate of inflation reached a 13-month high.

The manufacturing indicator has come ahead of the government releasing the first advance estimates of economic growth for 2019-20 on January 7. India’s economy grew 4.5% in the July-September quarter, the slowest pace of expansion in over six years. The decline in growth was led by manufacturing, which saw a 1% contraction in gross value added against a 6.9% rise in the corresponding quarter last year.
 

 

Jobs up, outlook cautious
The survey report showed that buoyed by strengthening underlying demand, goods producers resumed their hiring efforts in December. The rise in employment reversed the fall noted in November and was the strongest since February.

Despite the improvement in operating conditions during December, companies were cautious regarding the year-ahead outlook. On average, production is expected to expand in the coming 12 months, but the degree of optimism weakened to a 34-month low.

As per de Lima, the degree of optimism signalled at the end of 2019 was the weakest in just under three years, reflecting concerns over market conditions, which could restrict job creation and investment in the early part of 2020.

 

[Android_Halwa]

2019 was a crucial election year and public spending will come down drastically between Feb-aug/Sept and it even reflected in the growth...

We had good monsoon this year, productivity and exports should pick up by pre summer season...Bumper harvest season asale is year...food inflation will come down ..waiting for the budget and another round of GST review

By April, Industrial out put will be back to normal..

[Golfchalera]

Seeing the things I'm not sure about the immediate growth in Indian economy

Indian stock market is a bubble. Ath is lead by only few indices hdfc twins,bftwins,reliance 

Majority of mid n small caps are still bleeding

Fd overperformed mfs esp small n medium for the last 4yrs