India's manufacturing sector expanded at a faster pace in December amid a rise in new orders, survey results from IHS Markit showed on Thursday.
The headline IHS Markit manufacturing Purchasing Managers' Index, or PMI, increased to 52.7 in December from 51.2 in November. Any reading above 50 indicates expansion in the sector.
Among the five sub-components, four were increased in December and suppliers' delivery times remained unchanged from the preceding survey period.
At the sub-sector level, consumer goods and intermediate goods grew in December. Meanwhile, capital goods remained in contraction.
New work increased solidly in December with the pace of expansion rising at the fastest pace since July. New export orders grew for the twenty-sixth straight month, though moderately.
Employment increased in December after a fall in the preceding month and was the strongest since February.
Stocks of purchases declined but the pace of depletion was only fractional in December and the holdings of finished products declined sharply.
The rate of inflation was the highest in thirteen months in December. The rate of charge inflation was solid and the quickest in three years.
On average, production is expected to expand in the next 12 months, but the degree of optimism weakened to the lowest in thirty-four months, the survey reported.