Manufacturing PMI eases to three month low in December amid Covid fears

Data showed that manufacturing PMI fell to 55.5 in December from 57.6 in November

India’s manufacturing lost some momentum in December, easing to a three-month low after hitting a 10-month high in November, amid fears that the rapidly spreading third wave of the pandemic may hit consumer sentiment and output.

The data released by analytics firm IHS Markit showed the purchasing managers’ index (PMI) for manufacturing fell to 55.5 in December from 57.6 in November. A reading above 50 indicates expansion in economic activity and a number below that signals contraction.

“Companies continued with their stock-building initiatives, as evidenced by ano¬ther robust upturn in buying levels. Business confidence strengthened, but sentiment was again dampened by concerns