India’s manufacturing sector ended 2021 on a solid footing with growth in new orders and output remaining sharp despite losing some momentum in December, but elevated price pressures were still a concern, a private survey showed.
The Manufacturing Purchasing Managers’ Index, compiled and collected by IHS Markit Dec. 6-17, fell to 55.5 in December from November’s 57.6 though it stayed above the 50 mark that separates growth from contraction for a sixth month.
The survey results reinforce evidence of a continued recovery in Asia’s third-largest economy from the coronavirus pandemic-induced slump. That and rising price pressures may add to expectations the Reserve Bank of India will tighten monetary policy earlier than thought, like some other central banks.
