December saw companies raise production and bough inputs to rebuild inventories
The manufacturing sector continued to strengthen in December, the results of a private survey showed, as companies raised production and bought inputs to rebuild inventories after the pandemic-driven business closures earlier in the year.
Data released by analytics firm IHS Markit on Monday showed Purchasing Managers’ Index (PMI) for the manufacturing sector picked up marginally in December to 56.4 from 56.3 a month ago. A figure above 50 indicates expansion, while sub-50 signals contraction.
However, the job scenario continues to be dismal, with employment decreasing in December for the ninth consecutive month. “Companies stated that government guidelines to have employees working only on shifts and difficulties in finding suitable staff were the key factors causing the latest fall in payroll numbers. However, the pace of contraction was moderate and the weakest in the current downturn period,” IHS said.
Source: livemint
